Warburg Pincus backed Housing Finance Co, Truhome Finance files for 3000 Crore IPO

https://www.bseindia.com/corporates/download/10788/IPO%20Prior/TFL_Annexur_I_DRHP_20260309180037.pdf

Truhome Finance Limited, formerly known as Shriram Housing Finance Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The ₹3000 Crore IPO comprises of a fresh issue of equity shares of face value ₹ 10 each aggregating up to ₹1500 Crores and an offer for sale of equity shares of face value ₹ 10 each aggregating up to ₹1500 Crores. The offer for sale by promoter selling shareholder, Mango Crest Investment Limited comprises of equity shares of face value of ₹10 each aggregating up to ₹1500 Crores.

The Net Proceeds are proposed to be utilised towards augmenting the capital base to meet the Company’s future capital requirements including general corporate purposes and onward lending, arising out of the growth of the business, and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time. The Net Proceeds are proposed to be deployed over the course of Financial Years ended March 31, 2027 and March 31, 2028.

Founded in 2010, Truhome Finance is a retail-focused affordable housing finance company. The company was previously known as Shriram Housing Finance Limited, a wholly owned subsidiary of Shriram Finance Limited and was acquired in December 2024 by New York-based 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 offerings, with an average ticket size of ₹2.13 million as of December 31, 2025. It primarily targets creditworthy self-employed customers and serves them through a well-diversified pan-India distribution network of 216 branches spanning Metropolitan as well as Tier I, Tier II and Tier III cities across 19 states and union territories.

Truhome Finance benefits from one of the most geographically diversified loan portfolios, with no single state accounting for more than 18.00% of its AUM as of December 31, 2025. The three largest states in its portfolio namely Maharashtra, Gujarat and Tamil Nadu collectively account for 49.70% of its AUM as of the same date.

As of December 31, 2025, had served over 110,000 customers and had the second highest proportion of self-employed customers among its identified peers, with such customers contributing 76.96% of its AUM. For the same period, 85.32% of AUM was attributable to customers with CIBIL scores of 700 and above as well as 94.78% of loans included women as applicants or co-applicants.

The company is the third largest affordable housing finance company in India by AUM as of December 31, 2025, with an AUM of ₹21124.32 Crores. It is the fastest growing affordable housing finance company in India in terms of AUM CAGR over FY25, FY24 and FY23 (being 48.58%), having the highest AUM per branch of ₹107.230 Crores as of December 31, 2025. The Company’s AUM is primarily driven by housing loans, which account for 57.37% of total AUM with an average ticket size of ₹1.91 million. Loans against property contribute 39.22% of AUM with an average ticket size of ₹2.07 million, while other loan products account for 3.41% of AUM with an average ticket size of ₹118.82 million.

During the nine months ended December 2025 (9MFY26), the company disbursed ₹6382.446 Crores in loans and is among the fastest growing affordable housing finance companies in terms of disbursement CAGR over FY25, FY24 and FY23 (being 31.14%).

It has maintained asset quality, with gross stage-3 assets at 1.60% and net stage-3 assets at 1.09% as of December 2025, while the 30+ days past due (DPD) stood at 3.15%.  

Truhome Finance’s sourcing network includes a balanced mix of direct sourcing by 3,000+ in-house sales personnel, 6,600 connectors and 821 DSAs. As of December 31, 2025, borrowings were sourced from 48 lenders, including public sector, private sector and foreign banks and financial institutions, across instruments such as term loans, ECBs, NHB refinance, NCDs and securitizations.

In terms of profitability, the company reported a profit after tax (PAT) of ₹333.53 Crores for the nine months ended December 2025, with return on assets (RoA) of 2.66% and return on equity (RoE) of 11.62% (annualised for 9MFY26). Total income increased from ₹780.496 Crores in FY23 to ₹1905.48 Crores in FY25, while profit after tax (PAT) almost doubled growing from ₹137.75 Crores to ₹286.24 Crores over the same period. Operating expenses as a percentage of disbursements increased from 4.87% in FY23 to 7.17% in FY25, reflecting higher operating scale and expansion of business operations. The company has consistently recorded strong growth and disbursements while maintaining disciplined underwriting, spread on advances and strong asset quality.

Truhome Finance recently appointed former SBI Chairman Dinesh Kumar Khara as its new chairperson for a five-year term. The management team is led by Mr. Subramanian Jambunathan (also known as Ravi Subramanian), MD and CEO, who have over 30 years of experience in financial services and has been associated with the Shriram group since 2010.

JM Financial Limited, IIFL Capital Services Limited (formerly known as IIFL Securities Limited), Jefferies India Private Limited and Kotak Mahindra Capital Company Limited are the bankers to the issue.