Truhome Finance is a significant low-cost housing financier and is backed by the international investment giant Warburg Pincus. Truhome Finance has officialy initiated its public listing journey by filling its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). It aims to secure ₹3,000 crore of capital through an Initial Public Offering (IPO). It is a major milestone in the mortgage lending sector in India.

Proposed IPO and capital utilization

The IPO that is proposed is a combination of both new and secondary sales of equal proportions. It also involves an issue of shares worth up to ₹1,500 crores and an Offer for Sale (OFS) of up to ₹1,500 crores of the selling shareholder, who is a promoter, Mango Crest Investment Limited (an affiliate of Warburg Pincus). A pre-IPO issue of up to ₹300 crore may be considered by the company. This will be deductible from the portion of the fresh issue.

Truhome Finance will use the net proceeds of the fresh issue on a primary basis to increase its capital base. This is being strengthened to meet future capital requirements, including additional lending, and also to ensure that the capital adequacy requirements stipulated by the Reserve Bank of India (RBI) are fulfilled.

Financial performance and market leadership

Truhome Finance was established in 2010. Truhome Finance is a former subsidiary of Shriram Finance known as Shriram Housing Finance. In December 2024, it experienced a significant change of ownership, being acquired by Warburg Pincus at a price of around ₹4,630 crores. After this purchase, the company has 98.16% ownership by Warburg Pincus.

Truhome Finance is an Indian based affordable housing finance Company with the third-largest Assets under Management (AUM). This has an impressive compound annual growth rate (CAGR) of 48.58% as of December 31, 2025, with AUM of ₹21,124.32 crore compared to FY23. The company focuses mainly on self-employed people, and on the borrower front, approximately 77% of the borrowers in the company have an average loan ticket of ₹21.3 lakh.

The financial health of the company has been on a steady upward trend. Truhome has registered an overall income of ₹1,905.48 crore and profit after tax of ₹286.24 crore in the fiscal year ending March 2025 (FY25). This has also been maintained in the present fiscal year, and the company has already made a profit of ₹333.53 crore during the first nine months of the present fiscal year, FY26. The quality of assets is also healthy, and the gross stage-3 assets (GNPAs) are maintained at 1.60%.

Truhome Finance operationally operates a pan-India network of 216 branches in 19 states and Union Territories. It has a well-diversified portfolio to prevent concentration risk, and its three states of Maharashtra, Gujarat, and Tamil Nadu collectively represent about 50% of its AUM. Its current management, headed by the MD and CEO, Ravi Subramanian, is the immediate previous SBI Chairman, Dinesh Kumar Khara, who was recently made the chairperson.

Conclusion

The move by Truhome Finance to access the public markets with ₹3,000 crore of housing credit signifies the strong demand for affordable housing credit in India. With the strategic support of Warburg Pincus and the presence of its own market base, the company has a strong opportunity to expand its lending business.

The first Indian mortgage lender IPO since the end of 2024, this IPO has the potential to be one of the largest public issues of 2026. With the company set to launch on the bourses, the objective is to continue on its growth path and offer affordable housing credit to the previously underserved self-employed.