Truhome Finance Files Draft Prospectus for ₹3,000 Crore Initial Public Offering

Truhome Finance Ltd Files Draft Red Herring Prospectus for ₹3,000 Crore IPO

Company Overview

Truhome Finance Ltd, formerly known as Shriram Housing Finance Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company, established in 2010, focuses on affordable housing finance for retail customers.

IPO Details

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

The ₹3,000 crore IPO consists of a fresh issue of equity shares with a face value of ₹10 each, totaling up to ₹1,500 crores, along with an offer for sale of equity shares also with a face value of ₹10 each, amounting to ₹1,500 crores. The offer for sale is provided by the promoter selling shareholder, Mango Crest Investment Limited.

Use of Proceeds

The net proceeds are intended to enhance the capital base to satisfy the company's future capital needs, including general corporate uses and further lending due to business growth. The net proceeds are also planned to ensure compliance with capital adequacy regulations set by the Reserve Bank of India (RBI) from time to time. The allocation of net proceeds is planned to be made during the financial years ending 31 March 2027 and 31 March 2028.

Banking Arrangements

Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO

The banks involved in the issue include JM Financial Limited, IIFL Capital Services Limited (formerly IIFL Securities Limited), Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited.

Company Performance

As of December 31, 2025, the company provides a wide array of secured lending solutions, including housing loans and loans against property, with an average loan size of ₹2.13 million. The company primarily aims at creditworthy self-employed individuals and reaches them through a diverse distribution network of 216 branches located across Metropolitan areas, as well as Tier I, Tier II, and Tier III cities in 19 states and union territories.

Financial Performance

For the nine months ending December 2025, the company reported a profit after tax (PAT) of ₹333.53 Crores, achieving a return on assets (RoA) of 2.66% and a return on equity (RoE) of 11.62% (annualized for 9MFY26). Total income rose from ₹780.496 crores in FY23 to ₹1905.48 crores in FY25, while PAT nearly doubled, increasing from ₹137.75 crores to ₹286.24 crores during the same timeframe. The operating expenses as a percentage of disbursements grew from 4.87% in FY23 to 7.17% in FY25, indicating a larger operating scale and an expansion in business activities.