Mumbai, Mar 11: Truhome Finance Limited, formerly known as Shriram Housing Finance Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore through an Initial Public Offering (IPO).
The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹1,500 crore and an offer for sale (OFS) of equity shares aggregating up to ₹1,500 crore by the promoter selling shareholder, Mango Crest Investment Limited.
The net proceeds from the fresh issue are proposed to be utilised to augment the company’s capital base, support future capital requirements, and expand onward lending activities in line with business growth. The funds will also ensure compliance with regulatory capital adequacy requirements prescribed by the Reserve Bank of India (RBI). Deployment of proceeds is expected over the financial years ending March 31, 2027, and March 31, 2028.
Founded in 2010, Truhome Finance Limited is a retail-focused affordable housing finance company. The company was previously a wholly owned subsidiary of Shriram Finance Limited before being acquired in December 2024 by global private equity firm Warburg Pincus.
The company offers a comprehensive suite of secured lending products, including housing loans, loans against property, and other related financial offerings. As of December 31, 2025, the company reported an average ticket size of ₹2.13 million and serves primarily creditworthy self-employed customers through a diversified distribution network of 216 branches across 19 states and union territories in India, covering metropolitan as well as Tier I, Tier II, and Tier III cities.
Truhome Finance maintains a well-diversified loan portfolio, with no single state accounting for more than 18% of its assets under management (AUM). Its three largest markets—Maharashtra, Gujarat, and Tamil Nadu—collectively account for 49.70% of total AUM.
As of December 2025, the company had served over 110,000 customers, with 76.96% of AUM from self-employed borrowers and 85.32% of AUM from customers with CIBIL scores of 700 and above. Furthermore, 94.78% of loans include women as applicants or co-applicants, reflecting the company’s commitment to inclusive housing finance.
With an AUM of ₹21,124.32 crore, Truhome Finance is the third-largest affordable housing finance company in India by AUM. It is also among the fastest-growing players in the sector, recording an AUM CAGR of 48.58% from FY23 to FY25, with the highest AUM per branch at ₹107.23 crore.
Housing loans account for 57.37% of AUM with an average ticket size of ₹1.91 million, loans against property contribute 39.22% with an average ticket size of ₹2.07 million, and other loans represent 3.41% of total AUM.
During the nine months ended December 2025 (9MFY26), the company disbursed ₹6,382.45 crore in loans, maintaining a disbursement CAGR of 31.14% over FY23–FY25.
Truhome Finance has maintained strong asset quality, with gross stage-3 assets at 1.60%, net stage-3 assets at 1.09%, and 30+ days past due (DPD) at 3.15% as of December 2025.
The company’s sourcing network includes over 3,000 in-house sales personnel, 6,600 connectors, and 821 Direct Selling Agents (DSAs). Borrowings are sourced from 48 lenders, including public sector banks, private sector banks, foreign banks, and financial institutions through term loans, external commercial borrowings (ECBs), NHB refinance, non-convertible debentures (NCDs), and securitisation.
On the financial front, Truhome Finance reported a profit after tax (PAT) of ₹333.53 crore for 9MFY26, with a return on assets (RoA) of 2.66% and a return on equity (RoE) of 11.62% (annualised). Total income increased from ₹780.49 crore in FY23 to ₹1,905.48 crore in FY25, while PAT almost doubled from ₹137.75 crore to ₹286.24 crore over the same period.
The company recently appointed former Dinesh Kumar Khara, ex-Chairman of State Bank of India, as Chairperson for a five-year term. The leadership team is headed by Subramanian Jambunathan (Ravi Subramanian), MD & CEO, who brings over three decades of experience in financial services and has been associated with the Shriram Group since 2010.
JM Financial Limited, IIFL Capital Services Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited are acting as book-running lead managers to the issue.
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