The draft filing proposes a fresh issue of up to Rs. 1500 crores and an offer for sale of up to Rs. 1500 crores, as Truhome Finance, led by Ravi Subramanian and chaired by Dinesh Kumar Khara, looks to strengthen capital for future growth and onward lending.
Mumbai, 10 March 2026: Public market plans are moving ahead for Truhome Finance, the affordable housing finance company formerly known as Shriram Housing Finance Limited, after it filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India for a proposed Rs. 3000 crore initial public offering.
The proposed issue comprises a fresh issue of equity shares of face value Rs. 10 each aggregating up to Rs. 1500 crores and an offer for sale of equity shares of face value Rs. 10 each aggregating up to Rs. 1500 crores. The offer for sale will be undertaken by promoter selling shareholder Mango Crest Investment Limited.
According to the draft filing, the net proceeds from the fresh issue are proposed to be used toward augmenting the company’s capital base to meet future capital requirements, including onward lending and general corporate purposes, while also ensuring compliance with regulatory requirements on capital adequacy prescribed by the Reserve Bank of India. The proceeds are proposed to be deployed over the financial years ending 31 March 2027 and 31 March 2028.
Founded in 2010, Truhome Finance is a retail focused affordable housing finance company that was acquired in December 2024 by Warburg Pincus. The company offers housing loans, loans against property, and related secured lending products. As of 31 December 2025, its average ticket size stood at Rs. 2.13 million.
The company operates through a pan India distribution network of 216 branches across 19 states and union territories, covering metropolitan centres as well as Tier I, Tier II, and Tier III cities. It said its loan book remains geographically diversified, with no single state accounting for more than 18 percent of assets under management as of 31 December 2025. Maharashtra, Gujarat, and Tamil Nadu together accounted for 49.70 percent of assets under management.
As of 31 December 2025, Truhome Finance had served more than 110,000 customers. Self employed customers contributed 76.96 percent of assets under management, while 85.32 percent of assets under management came from customers with CIBIL scores of 700 and above. The company also said 94.78 percent of its loans included women as applicants or co applicants.
The filing states that Truhome Finance was the third largest affordable housing finance company in India by assets under management as of 31 December 2025, with assets under management of Rs. 21124.32 crores. Housing loans accounted for 57.37 percent of total assets under management with an average ticket size of Rs. 1.91 million. Loans against property contributed 39.22 percent with an average ticket size of Rs. 2.07 million, while other loan products made up 3.41 percent.
During the nine months ended December 2025, the company disbursed Rs. 6382.446 crores in loans. It reported gross stage 3 assets at 1.60 percent and net stage 3 assets at 1.09 percent as of December 2025, while 30 plus days past due stood at 3.15 percent.
Its sourcing network includes more than 3000 in house sales personnel, 6600 connectors, and 821 direct selling agents. As of 31 December 2025, borrowings were sourced from 48 lenders, including public sector banks, private sector banks, foreign banks, and financial institutions, through instruments such as term loans, external commercial borrowings, NHB refinance, non convertible debentures, and securitisations.
On profitability, Truhome Finance reported profit after tax of Rs. 333.53 crores for the nine months ended December 2025, with return on assets of 2.66 percent and return on equity of 11.62 percent on an annualised basis for 9MFY26. Total income rose from Rs. 780.496 crores in FY23 to Rs. 1905.48 crores in FY25, while profit after tax increased from Rs. 137.75 crores to Rs. 286.24 crores over the same period.
The company recently appointed former SBI Chairman Dinesh Kumar Khara as its chairperson for a five year term. Its management team is led by Ravi Subramanian, Managing Director and Chief Executive Officer, who has more than 30 years of experience in financial services and has been associated with the Shriram group since 2010.
JM Financial Limited, IIFL Capital Services Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited are the bankers to the issue.
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