Truhome Finance, formerly known as Shriram Housing Finance, has filed its DRHP with the Securities and Exchange Board of India (SEBI) to raise INR 3,000 crore through IPO. Truhome Finance IPO will be a mix of fresh issue and OFS of INR 1,500 crore each. Warburg Pincus-backed Mango Crest is selling shares worth INR 1,500 crore in the OFS.
The IPO proceeds will be used to augment the company’s capital base to support loan growth, in the affordable housing segment. The IPO will be managed by JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital as book running lead managers. Kfin Technologies is the registrar of the issue.
Truhome Finance IPO: Business Overview
Truhome Finance was founded in 2010 and operates as a retail-focused affordable housing finance company. The company mainly caters to self-employed borrowers who often lack formal income documentation but have stable cash flows.
As of 31 December 2025, the company reported:
- Assets Under Management (AUM): INR 21,124 crore
- Average loan ticket size: INR 21.3 lakh
- Active loan accounts: 1,10,257
- Branch network: 216 branches across 19 states and union territories
According to a CRISIL report, Truhome is the third-largest affordable housing finance company in India by AUM and the fastest-growing among peers with a 48.58% AUM CAGR between FY23–FY25.
Truhome’s borrowers are mainly from Tier II and Tier III cities, where housing demand remains structurally strong due to urbanization, rising incomes, and government support through schemes like PMAY.
Housing loans account for the majority of the portfolio, while loans against property (LAP) form the second-largest segment.
| Product Segment | Avg Ticket Size (INR Cr) | Contribution to AUM |
|---|---|---|
| Housing Loans | 0.19 | 57.37 |
| Loans Against Property | 0.21 | 39.22 |
| Others (construction finance & corporate lending) | 11.88 | 3.41 |
Strong Focus on Self-Employed Borrowers
One of Truhome’s defining characteristics is its large exposure to self-employed customers, who account for nearly 77% of AUM. These borrowers include small traders, service providers, and local entrepreneurs who typically struggle to obtain credit from traditional banks due to a lack of formal income documentation.
Instead of relying purely on salary slips, the company evaluates cash flow stability, business vintage, and repayment behaviour. This strategy has helped the Truhome to build a sizeable firm in the segment and to keep a strong asset quality.
As of December 2025, 85.32% of the loan book belonged to borrowers with CIBIL scores above 700. Despite focusing on self-employed borrowers, the company has maintained stable asset quality metrics.
As of 31 December 2025, the company reported:
- Gross NPA: 1.60%
- Net NPA: 1.09%
- 30+ days past due: 3.15%
Loan-to-value ratios remain conservative, with housing loans averaging 56.6% LTV and loans against property averaging 48.25%, providing a collateral cushion.
Truhome Finance IPO: Financial Performance
| Particulars | FY2023 | FY2024 | FY2025 | 9M FY2026 |
|---|---|---|---|---|
| Revenue from Operations | 779.46 | 1,424.84 | 1,904.52 | 1,807.34 |
| Total Income | 780.50 | 1,425.35 | 1,905.48 | 1,807.36 |
| Finance Costs | 392.26 | 728.21 | 949.24 | 826.83 |
| Profit After Tax | 137.75 | 217.44 | 286.24 | 333.54 |
Balance Sheet Strength
Truhome’s balance sheet has expanded rapidly in recent years.
| Metric | FY2023 | FY2024 | FY2025 | Dec 2025 |
|---|---|---|---|---|
| Gross Loans (INR Cr) | 6,733.64 | 10,842.03 | 13,482.44 | 15,918.90 |
| AUM (INR Cr) | 8,046.60 | 13,761.68 | 17,763.97 | 21,124.33 |
The company maintains a strong capital position with a CRAR of 37.76%, well above regulatory requirements. Its debt-to-equity ratio stands at 3.22x, indicating moderate leverage for a housing finance company.
Truhome Finance recently raised USD 150 million via external commercial borrowings, including USD 40 million from Taiwanese banks. Its average cost of borrowings for the nine months ended December 2025 stood at 8.85%, while the incremental cost declined to 7.86%, reflecting improving funding efficiency.
Truhome Finance IPO: Market Outlook
India’s affordable housing finance sector continues to benefit from structural demand drivers.
According to CRISIL, the affordable housing finance market is expected to grow at a 8–10% CAGR through FY2028, supported by:
- Urbanization and nuclear family structures
- Government support through housing schemes
- Increasing income formalization
- Rising demand from Tier II and Tier III cities
Given its positioning in the INR 15–35 lakh loan ticket segment, Truhome is well placed to capture growth in this underserved market.
Bottomline: Overall, Truhome Finance appears to be a well-scaled affordable housing finance player. The company has a strong growth in AUM and stable asset quality. However, investors should watch how the company manages rapid expansion, asset quality in the self-employed segment, and borrowing costs going forward. Valuation at the time of IPO will ultimately determine the attractiveness of the offer.
