Truhome Finance IPO Gets SEBI Nod for ₹3,000 Crore Issue

    Summary:


    Truhome Finance Limited is a retail-focused affordable housing finance company that provides housing loans, loans against property and other secured lending products to low- and middle-income borrowers. The company primarily focuses on self-employed customers and operates through a branch network of 216 branches across 19 states and union territories.

    The company has reported growth in assets, profit after tax, net worth and borrowings over recent periods. The IPO includes a Fresh Issue of up to ₹1,500 crore and an Offer for Sale of up to ₹1,500 crore. The fresh issue proceeds are proposed to be used for augmenting the company’s capital base to support future capital requirements, including onward lending.

    At the same time, investors should consider risks related to credit quality, borrower profile, leverage, funding costs, interest rate movements, regulatory changes and competition in the affordable housing finance segment. Investors may refer to the offer documents and other publicly available information before making an investment decision.

    Affordable housing finance is a sector that sits at the intersection of banking, real estate and social mobility. It serves borrowers who need home loans but may not always receive them from traditional banks, especially self-employed individuals, small traders and low- to middle-income households whose earnings are real but often informal. Reaching this segment requires more than capital. It requires field presence, specialised credit tools and experience in assessing borrowers that standard banking processes may not fully serve.

    Truhome Finance Limited, formerly Shriram Housing Finance Limited, has received SEBI approval for its initial public offering (IPO). The company provides housing loans, loans against property and other secured lending products to low- and middle-income borrowers across India.

    For investors seeking to understand the company’s operations, financial performance, industry position and business risks, the offer documents provide key insights into how the company generates revenue and plans to utilise the IPO proceeds. This article simplifies the key information available in an easy-to-understand format.

    IPO Details

    The table below highlights the key details of the public issue available so far, while certain information such as the price band, lot size and issue dates are yet to be announced.

    Particulars

    Details

    IPO Type

    Book Built Issue

    IPO Open Date

    To be announced

    IPO Close Date

    To be announced

    Face Value

    ₹10 per equity share

    Price Band

    To be announced

    Lot Size

    To be announced

    Fresh Issue

    Up to ₹1,500 crore

    Offer for Sale

    Up to ₹1,500 crore

    Total Issue Size

    Up to ₹3,000 crore

    Listing Exchange

    NSE and BSE

    The IPO consists of both a Fresh Issue and an Offer for Sale.

    Under the Fresh Issue portion, the company will receive funds from the IPO. The OFS portion comprises shares being sold by Mango Crest Investment Limited, the promoter of the company. The proceeds from the OFS will be received by the selling shareholder and not by the company.

    The company plans to use the fresh issue proceeds towards augmenting its capital base to meet future capital requirements, including onward lending, arising out of the growth of its business.

    The price band, lot size and offer dates will be disclosed at a later stage.

    About the Company

    Company Background

    Truhome Finance Limited was incorporated in 2010 as Shriram Housing Finance Limited. The company was later acquired by funds managed by Warburg Pincus along with co-investors, including the Qatar Investment Authority, and was subsequently renamed Truhome Finance Limited. 

    The company is a retail-focused affordable housing finance company. Its registered office is located in Chennai, Tamil Nadu.

    Business Overview

    The company offers secured lending products to low- and middle-income borrowers. A significant portion of its customer base consists of self-employed borrowers whose income may be steady but not always supported by formal salary slips or standard income documents.

    Its product portfolio includes:

    · Housing loans
    · Loans against property
    · Top-up loans and other secured loan products

    Housing loans form a major part of the company’s business. As of December 31, 2025, the company had an average ticket size of ₹21.3 lakh.

    The company operates through a pan-India distribution network with 216 branches across 19 states and union territories, as of December 31, 2025.

    Revenue Model

    Truhome Finance primarily earns revenue from interest income on loans. It also earns processing fees and other charges linked to its lending operations.

    Its focus on self-employed borrowers plays an important role in its underwriting, disbursement and collection processes. The company also operates a technology-enabled collections framework supported by an in-house team.

    Industry Position

    Truhome Finance operates in the affordable housing finance segment. Its focus is on low- and middle-income borrowers, especially self-employed customers in markets where access to formal home loans may be limited.

    The company lends through its branch-led network and focuses on markets where demand for affordable housing finance remains high.

    Industry Overview

    Affordable housing finance in India is supported by long-term demand from low- and middle-income households. Many borrowers in this segment are self-employed or work in informal income categories, which can make access to formal credit more difficult.

    Key growth drivers include:

    · Demand for affordable housing in urban, semi-urban and smaller markets
    · Large pool of self-employed borrowers outside the formal credit system
    · Government housing schemes supporting home ownership
    · Growing need for secured lending products among low- and middle-income households
    · Technology-enabled underwriting and collections improving lender reach

    Housing finance companies that can assess informal income, manage credit risk and build strong collection systems may benefit from this demand. At the same time, the segment requires careful underwriting because borrower income patterns may be less predictable than salaried customer profiles.

    Company Financials

    The financial performance of Truhome Finance Limited over recent periods provides insight into its income growth, profitability, asset base and leverage. The table below presents key financial metrics as disclosed.

    Financials (₹ crore)

    31 Dec 2025

    31 Mar 2025

    31 Mar 2024

    31 Mar 2023

    Assets

    18,106.06

    15,140.41

    11,820.82

    7,733.56

    Total Income

    1,807.36

    1,905.48

    1,425.35

    780.50

    Profit After Tax

    333.54

    286.24

    217.44

    137.75

    Net Worth

    4,182.73

    3,436.62

    1,923.73

    1,299.19

    Reserves and Surplus

    3,702.66

    2,977.78

    1,196.24

    973.14

    Total Borrowings

    13,487.86

    11,324.49

    9,617.17

    6,291.15

    Strengths of Truhome Finance Limited

    1. Presence in Affordable Housing Finance

    The company has operated in the affordable housing finance segment since 2010. This experience can support its ability to understand borrower behaviour, manage field-level operations and build lending processes for its target customer base.

    2. Focus on Self-Employed Borrowers

    A significant part of the company’s customer base consists of self-employed borrowers. This segment is often underserved by traditional banks due to limited formal income documentation. The company’s operating model is built around serving this borrower category.

    3. Wide Distribution Network

    As of December 31, 2025, Truhome Finance had 216 branches across 19 states and union territories. This branch network gives the company access to markets where affordable housing demand exists but formal lending penetration may remain limited.

    4. Secured Loan Product Portfolio

    The company offers housing loans, loans against property, top-up loans and other secured lending products. This allows it to serve different borrower needs within the low- and middle-income customer segment.

    5. Growth in Financial Performance

    The company has reported growth in assets, net worth, borrowings and profit after tax over recent periods. This indicates expansion in its lending operations and balance sheet size.

    Risks Associated with the Business

    Credit and Asset Quality Risk

    The company lends to low- and middle-income borrowers, including self-employed customers. Borrowers with irregular income may be more exposed to economic volatility. Any slowdown in their business or earnings could affect repayment behaviour and asset quality.

    Geographic Concentration Risk

    If a large portion of the company’s loan book is concentrated in certain regions, adverse economic, regulatory or market conditions in those areas could affect loan performance.

    Leverage and Funding Risk

    The business depends on borrowings to fund lending operations. Any rise in borrowing costs or difficulty in accessing funds could affect growth, margins and profitability.

    Interest Rate Risk

    Housing finance companies are exposed to changes in interest rates. If borrowing costs rise faster than lending yields, the company’s spreads and profitability may be affected.

    Regulatory and Compliance Risk

    The company operates in a regulated financial services sector. Changes in rules related to capital adequacy, provisioning, lending norms or housing finance regulations could affect business operations.

    Competition Risk

    Banks, housing finance companies and non-banking financial companies operate in the affordable housing finance market. Increased competition may affect customer acquisition, pricing and loan yields.

    Key Things Investors May Consider

    Before evaluating the IPO, investors may consider the following factors:

    · The company’s lending model and focus on self-employed borrowers
    · Growth in assets, income and profitability
    · Branch network and geographic reach
    · Credit quality and collection efficiency
    · Borrowing levels and funding costs
    · Exposure to affordable housing finance demand
    · Regulatory environment for housing finance companies
    · Competition from banks, NBFCs and other housing finance companies
    · Valuation relative to listed peers in the housing finance sector

    Published Date : 14 Jul 2026

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    Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.


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    Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited



    This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing. 

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