Truhome Finance Ltd, formerly known as Shriram Housing Finance Ltd has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI).
The IPO, valued at ₹3,000 crore, consists of a fresh issue of equity shares with a face value of ₹10 each, totaling up to ₹1,500 crores, along with an offer for sale of equity shares also with a face value of ₹10 each, amounting to ₹1,500 crores.
The offer for sale, provided by the promoter selling shareholder, Mango Crest Investment Limited, is for equity shares of ₹10 each, totalling up to ₹1,500 crores.
The net proceeds are intended to enhance the capital base to satisfy the Company’s future capital needs, including general corporate uses and further lending due to business growth, as well as to ensure compliance with capital adequacy regulations set by the RBI from time to time. The net proceeds are planned to be allocated during the financial years ending 31 March 2027 and 31 March 2028.
The banks involved in the issue include JM Financial Limited, IIFL Capital Services Limited (formerly IIFL Securities Limited), Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited.
Company details
Established in 2010, Truhome Finance is a company that focuses on affordable housing finance for retail customers. Formerly known as Shriram Housing Finance Limited, which was a wholly owned subsidiary of Shriram Finance Limited, the company was purchased by the New York-based global private equity firm Warburg Pincus in December 2024.
Truhome Finance provides a wide array of secured lending solutions, including housing loans and loans against property, along with other related products, with an average loan size of ₹2.13 million as of December 31, 2025.
The company primarily aims at creditworthy self-employed individuals and reaches them through a diverse distribution network of 216 branches located across Metropolitan areas as well as Tier I, Tier II, and Tier III cities in 19 states and union territories.
In terms of profitability, the firm reported a profit after tax (PAT) of ₹333.53 Crores for the nine months ending December 2025, achieving a return on assets (RoA) of 2.66% and a return on equity (RoE) of 11.62% (annualized for 9MFY26).
Total income rose from ₹780.496 crores in FY23 to ₹1905.48 crores in FY25, while PAT nearly doubled, increasing from ₹137.75 crores to ₹286.24 crores during the same timeframe. The operating expenses as a percentage of disbursements grew from 4.87% in FY23 to 7.17% in FY25, indicating a larger operating scale and an expansion in business activities.
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