Veritas Finance and SK Finance, two SME lenders, are expected to go public in August.

Two mid-sized lenders for small and medium-sized businesses, Veritas Finance and SK Finance, are preparing to enter the capital market by the beginning of next month in response to HDB Financial's listing. According to sources, both businesses are well along in their roadshow operations. SK Finance intends to raise Rs 2,200 crore (Rs 500 crore of fresh issue and Rs 1,700 crore of offer for sale), opposed to Rs 2,800 crore (Rs 600 crore of fresh issue and Rs 2,200 crore of offer for sale) as Veritas seeks to raise these sums. It's interesting to note that Norwest Venture Partners has stock in both businesses and is anticipated to partially withdraw through both IPOs. Pricing details are reportedly being worked out, and by the end of this month, a final decision is anticipated. SK Finance, a Jaipur-based company that specializes in SME and auto loans, ended FY25 with a loan book of Rs 13,261 crore, up 27% from the previous year. The business was established in 1994 and primarily serves customers in Punjab, Madhya Pradesh, Gujarat, and Rajasthan in North India. In FY25, the lender's net profit increased by 21.72 percent to Rs 379.67 crores. Founded by D Arulmany, a former senior executive at Cholamandalam Investment and Finance Company, Veritas Finance is a non-bank with its headquarters in Chennai. It ended FY25 with net profit of Rs 295 crore (up 32% year-over-year) and total assets of around Rs 8,400 crore. Veritas Finance and SK Finance, two prominent non-banking financial institutions catering to small and medium-sized enterprises (SMEs), are preparing to enter the capital markets in early August. Their IPO plans come on the heels of HDB Financial's upcoming listing, indicating growing investor interest in the SME lending segment. Sources suggest that both companies are in the final stages of their roadshows, engaging with institutional investors to drum up interest and finalize pricing. SK Finance, based in Jaipur, plans to raise Rs 2,200 crore through its public issue—Rs 500 crore via fresh equity and Rs 1,700 crore through an offer for sale. The company has shown consistent growth in its core segments of SME and auto loans, especially across North Indian states such as Punjab, Madhya Pradesh, Gujarat, and Rajasthan. In FY25, it reported a 27% rise in its loan book, reaching Rs 13,261 crore, and posted a 21.72% increase in net profit to Rs 379.67 crore. These strong fundamentals make it an attractive prospect for investors seeking exposure to India’s expanding credit market. Veritas Finance, headquartered in Chennai and founded by D Arulmany, a former executive at Cholamandalam Investment and Finance Company, is aiming to raise Rs 2,800 crore—Rs 600 crore through a fresh issue and Rs 2,200 crore through an offer for sale. The company ended FY25 with a 32% year-on-year growth in net profit, reaching Rs 295 crore, and total assets amounting to around Rs 8,400 crore. Veritas primarily focuses on secured lending to MSMEs and has built a solid track record of profitability and asset quality.