Warburg Pincus-backed Truhome Finance files draft papers for Rs 3,000-crore issue with SEBI

Warburg Pincus-backed Truhome Finance has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise Rs 3,000 crore through an initial public offering. 

The proposed issue comprises a fresh issue of equity shares worth up to Rs 1,500 crore and an offer for sale of up to Rs 1,500 crore by promoter selling shareholder Mango Crest Investment Limited. The company said proceeds from the fresh issue will be used to strengthen its capital base, support future business growth, meet regulatory capital requirements and fund onward lending. 

Founded in 2010, Truhome Finance is a retail-focused affordable housing finance company. Formerly known as Shriram Housing Finance, it was acquired in December 2024 by New York-based private equity firm Warburg Pincus. 

The company offers housing loans, loans against property and related secured lending products, with an average ticket size of Rs 21.3 lakh as of December 31, 2025. It primarily caters to self-employed customers through a pan-India network of 216 branches spread across 19 states and union territories. 

As of December 31, 2025, Truhome Finance had assets under management of Rs 21,124.32 crore, making it the third-largest affordable housing finance company in India by AUM, according to the document. It said it was also the fastest-growing player among peers in AUM growth over FY23 to FY25, with a CAGR of 48.58%. 

Its loan book remains geographically diversified, with no single state contributing more than 18% of AUM. Maharashtra, Gujarat and Tamil Nadu together accounted for 49.7% of the portfolio at the end of December 2025. The company said it had served more than 110,000 customers by that date, with self-employed borrowers contributing 76.96% of AUM. 

The company’s housing loans accounted for 57.37% of total AUM, while loans against property made up 39.22%. In the first nine months of FY26, Truhome disbursed Rs 6,382.45 crore in loans and reported a profit after tax of Rs 333.53 crore. Asset quality remained steady, with gross stage-3 assets at 1.60% and net stage-3 assets at 1.09% as of December 2025. 

For the nine months ended December 2025, return on assets stood at 2.66% and return on equity at 11.62%, annualised. Total income rose from Rs 780.5 crore in FY23 to Rs 1,905.48 crore in FY25, while profit after tax increased from Rs 137.75 crore to Rs 286.24 crore over the same period. 

Truhome said its sourcing network includes more than 3,000 in-house sales personnel, 6,600 connectors and 821 direct selling agents. Its borrowings were sourced from 48 lenders as of December 31, 2025, including public and private sector banks, foreign banks and financial institutions. 

The company recently appointed former SBI Chairman Dinesh Kumar Khara as chairperson for a five-year term. Its management is led by MD and CEO Subramanian Jambunathan, also known as Ravi Subramanian. JM Financial, IIFL Capital Services, Jefferies India and Kotak Mahindra Capital are the book-running lead managers to the issue.