Truhome Finance Prepares ₹3,000 Crore IPO Following SEBI Clearance for Fresh Issue and OFS

Retail-focused housing finance firm Truhome Finance Limited, formerly known as Shriram Housing Finance Limited, is advancing its public market debut after receiving approval from the Securities and Exchange Board of India (SEBI) for its ₹3,000 crore initial public offering (IPO).

The company had submitted its Draft Red Herring Prospectus (DRHP) to the capital markets regulator in March 2026 and secured regulatory clearance to float the issue on both the National Stock Exchange (NSE) and BSE.

IPO Structure and Capital Allocation

According to the regulatory draft filings, the issue is structured with an equal split between primary capital raising and secondary promoter dilution:

• Fresh Issue: Equity shares of face value ₹10 each aggregating up to ₹1,500 crore.
• Offer for Sale (OFS): Equity shares of face value ₹10 each aggregating up to ₹1,500 crore offloaded by promoter selling shareholder Mango Crest Investment Limited, an affiliate of global private equity major Warburg Pincus.

The draft prospectus also notes that Truhome Finance may consider a pre-IPO placement of up to ₹300 crore, which would correspondingly reduce the fresh issue size if executed.

The company stated that net proceeds from the fresh issue will be utilized to augment its Tier-I capital base to meet future capital requirements, including onward lending and general corporate purposes. The capital will also support compliance with capital adequacy requirements prescribed by the Reserve Bank of India (RBI), with deployment planned across fiscal years ending March 31, 2027, and March 31, 2028.

Financial Profile and Operational Reach

Founded in 2010 as a subsidiary of Shriram Finance Limited, Truhome Finance was acquired by New York-based Warburg Pincus in December 2024. The company operates as the third-largest affordable housing finance company (HFC) in India by assets under management (AUM) within its identified peer set.

Key operational and financial metrics reported in the regulatory filings include:

• Assets Under Management: Total AUM stood at ₹21,124.32 crore as of December 31, 2025, recording a 48.58% compound annual growth rate (CAGR) across FY23, FY24, and FY25.
• Loan Portfolio Mix: Housing loans accounted for 57.37% of total AUM with an average ticket size of ₹1.91 million, while loans against property (LAP) contributed 39.22% with an average ticket size of ₹2.82 million. The overall average loan size across products stood at ₹2.13 million.
• Profitability: For the nine months ended December 31, 2025 (9MFY26), profit after tax (PAT) reached ₹333.53 crore, generating an annualized return on assets (RoA) of 2.66% and return on equity (RoE) of 11.62%. Annual PAT rose from ₹137.75 crore in FY23 to ₹286.24 crore in FY25, while total income surged from ₹780.50 crore to ₹1,905.48 crore over the same period.
• Asset Quality: Gross stage-3 assets stood at 1.60% and net stage-3 assets were at 1.09% as of December 31, 2025, with 30+ days past due (DPD) at 3.15%.
• Branch Network: The lender operates across 216 branches in Tier-I, Tier-II, and Tier-III cities across 19 states and Union Territories, supported by in-house sales teams, direct selling agents (DSAs), and connectors.

Management and Issue Intermediaries

The board of Truhome Finance is chaired by former State Bank of India (SBI) Chairman Dinesh Kumar Khara, who was appointed as independent director and chairperson for a five-year term. Ravi Subramanian continues to lead executive operations as managing director and chief executive officer.

The book-running lead managers appointed for the public issue are JM Financial Limited, IIFL Capital Services Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited, with KFin Technologies Limited acting as the registrar.

Sectoral Implications for Indian Investors

The clearance of Truhome Finance's ₹3,000 crore issue comes as retail non-banking financial companies (NBFCs) and HFCs seek equity capital to sustain loan book growth while managing leverage. As of December 31, 2025, Truhome's capital-to-risk-weighted-assets ratio (CRAR) stood at 37.76% against the regulatory minimum threshold of 15%, while its debt-to-equity ratio stood at 3.22 times. Market participants will closely track the issue's valuation and subscription dynamics, viewing it as a benchmark for investor sentiment toward India's expanding affordable mortgage and secured retail credit market.