TruHome Finance Seeks ₹3,000 Crore Through IPO to Boost Affordable Housing
TruHome Finance, a prominent affordable housing finance company backed by Warburg Pincus, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The company aims to raise ₹3,000 crore through an initial public offering (IPO), which includes a fresh issue of ₹1,500 crore and an offer for sale (OFS) of up to ₹1,500 crore by its promoter, Mango Crest Investment Limited.
The proceeds from the fresh issue will be primarily used to strengthen the company's capital base, meet future capital requirements, and ensure compliance with the Reserve Bank of India's (RBI) capital adequacy norms. The funds are expected to be deployed over the fiscal years 2027 and 2028.
TruHome Finance, formerly known as Shriram Housing Finance Limited, was established in 2010. The company specializes in providing secured retail lending products, such as housing loans and loans against property, with a focus on self-employed borrowers. As of December 2025, TruHome Finance reported assets under management (AUM) of ₹21,124.3 crore, with an average ticket size of ₹21.3 lakh.
TruHome Finance is the third-largest affordable housing finance company in India by AUM, boasting a vast distribution network that spans 19 states and union territories through 216 branches. The company's robust network and strong market position have contributed to its significant growth over the years.
In December 2024, TruHome Finance was acquired by Mango Crest Investment Limited, an entity owned by Mulberry Inlet Investment, which is backed by private equity funds and vehicles managed by affiliates of Warburg Pincus. This acquisition marked a pivotal shift in the company's ownership and strategic direction.
On the financial front, TruHome Finance has demonstrated impressive growth. For the fiscal year 2025, the company's profit surged by 31.6% to ₹286.2 crore, compared to ₹217.4 crore in the previous fiscal year. Net interest income also saw a substantial increase, rising 47.5% to ₹5,794 crore from ₹3,928.5 crore.
For the nine months ending December 2025, TruHome Finance reported a profit of ₹333.5 crore, with net interest income totaling ₹580 crore. These financial results underscore the company's strong performance and potential for future growth.
To manage the IPO process, TruHome Finance has appointed JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital Company as the book-running lead managers. The IPO is expected to attract significant interest from investors, given the company's strong market standing and growth prospects in the affordable housing finance sector.
In addition to the IPO, TruHome Finance is considering raising up to ₹300 crore through a pre-IPO round, which would form part of the fresh issue component. This strategic move is aimed at further solidifying the company's financial position and capital base.
The IPO filing by TruHome Finance is a significant milestone in the company's journey, reflecting its commitment to expanding its reach and enhancing its services in the affordable housing finance market. With a robust business model and a clear vision for the future, TruHome Finance is well-positioned to capitalize on the growing demand for affordable housing solutions in India.
