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News Topical, Digital Desk : Additional tariffs have been imposed on India by the US and experts believe that it will have a major impact on some sectors. The impact of the deteriorating sentiments due to the tariff has already been seen on the stock market and the Nifty has slipped below important levels. At the same time, the deteriorating signals are also affecting the IPO market. Moneycontrol has given information in a report based on sources that Veritas Finance Limited, a non-banking financing company invested by Kedaara Capital, has postponed its IPO of about Rs 2,800 crore. According to the report, sources said that the company has taken this step in view of the possibility of negative impact on export-based small companies after the imposition of 50 percent tariff by the US. At present, this has not been confirmed by the company.
50% tariff imposed
The US imposed an additional 25% tariff on Indian companies for buying oil from Russia, which came into effect from 9:31 am on August 27. This additional tariff has been imposed on top of the already effective 25% reciprocal tariff. It is feared that this will have a serious impact on the MSME sector, especially companies in industries like textiles, gems and jewellery, auto components, chemicals and seafood. According to sources, the market is currently cautious about companies that provide loans to MSMEs.
Expectations from the next half Sources said that Veritas Finance had plans to launch an IPO in August. But the company stopped the plan due to the additional tariff imposed by US President Donald Trump. Veritas Finance provides working capital loans to MSMEs as well as loans for affordable homes in villages and towns, loans for old commercial vehicles and loans for small businessmen. The company's loan portfolio has reached Rs 6,517 crore as of September 30, 2024, which is 62% more than the previous financial year. Veritas' target from the IPO was to raise around Rs 2,800 crore, of which Rs 600 crore would have been primary capital and the rest would be investors' offer-for-sale stake. The company received approval from SEBI in April 2024, which is valid for 12 months. According to the source, the companies got a good response from investors in the road show for the IPO. In such a situation, the company is waiting for the situation to improve. Sources say that the company is now expecting better market conditions in the second half of the financial year and will consider bringing the IPO at the same time. According to the source, on getting better signals, it will decide to bring the IPO at the appropriate time in consultation with the investors.
Read More: Tariff vs Tax: Is there confusion about tax and tariff? Know the difference between the two?
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