MUMBAI: Affordable housing lender Truhome Finance (earlier known as Shriram Housing Finance) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to raise ₹3,000 crore through an Initial Public Offering (IPO).
The planned listing comes at a time when demand for affordable housing is growing across India, especially in Tier-2 and Tier-3 cities. Government programmes such as Housing for All and rising home ownership aspirations are supporting growth in the housing finance sector.
IPO structure
The IPO will include two parts:
- Fresh issue: ₹1,500 crore of new shares. The funds will be used to strengthen the company’s capital base and support future lending growth.
- Offer for Sale (OFS): ₹1,500 crore of shares will be sold by promoter Mango Crest Investment Ltd, an affiliate of global private equity firm Warburg Pincus.
The company may also raise up to ₹300 crore through a pre-IPO placement, which could reduce the size of the fresh issue.
Ownership and management
The company was renamed Truhome Finance in 2025 after it was acquired by Warburg Pincus along with other investors including Qatar Investment Authority.
The company is led by Ravi Subramanian, Managing Director and CEO. The board is chaired by Dinesh Kumar Khara, former chairman of State Bank of India.
Since the ownership change, the company has focused on expanding its lending portfolio, strengthening its balance sheet, and improving its distribution network across high-growth housing markets.
Business model and growth
Truhome Finance focuses mainly on providing affordable housing loans, particularly to self-employed borrowers and first-time home buyers who often find it difficult to access loans from traditional banks.
Key numbers highlight the company’s growth:
- Assets under management (AUM): ₹21,124 crore (as of December 2025)
- Average loan size: ₹21.3 lakh
- Branch network: 216 branches across 19 states and union territories
The company has a strong presence in markets such as Maharashtra, Gujarat, and Tamil Nadu, where demand for affordable housing remains strong.
Nearly 77% of the company’s loan portfolio comes from self-employed borrowers, a segment that continues to see rising credit demand as small businesses and entrepreneurs expand across smaller cities.
Financial performance
Truhome has reported steady growth in profitability in recent years.
For the first nine months of FY26, the company recorded a profit after tax (PAT) of ₹333.5 crore, already higher than its full-year FY25 profit of ₹286 crore.
The company has also reported strong growth in its loan book, supported by expanding demand for housing loans in emerging urban centres.
Industry outlook
The listing is expected to be closely watched by investors as it will be one of the key public offerings in the housing finance sector. It will also be the first major mortgage lender IPO since Bajaj Housing Finance went public in 2024.
The housing finance market in India is seeing steady expansion as more families look to buy homes and lenders increase their focus on underserved borrowers in smaller cities.
Affordable housing finance players (AUM – Dec 2025)
| Company | AUM (₹ Crore) | Primary Focus & Target Segment |
| Truhome Finance | 21,124 |
Affordable housing; creditworthy self-employed borrowers
|
| Aavas Financiers | ~20,200 |
Rural and semi-urban housing loans |
| Home First Finance | ~11,500 |
Technology-led lending for first-time home buyers |
Conclusion
Truhome Finance’s IPO filing reflects the growing importance of affordable housing finance in India’s real estate ecosystem. As housing demand continues to expand beyond major metros, lenders that focus on smaller cities and self-employed borrowers are seeing strong growth opportunities.
If the listing receives a positive response from investors, it could further strengthen the company’s ability to expand its lending operations and deepen its presence in emerging housing markets across the country.
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