Warburg Pincus-backed affordable housing lender Truhome 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 IPO comprises a fresh issue of equity shares aggregating up to ₹1,500 crore and an offer for sale (OFS) of equity shares worth up to ₹1,500 crore by promoter selling shareholder Mango Crest Investment Limited.

According to the DRHP, the proceeds from the fresh issue will be used to augment the company’s capital base to support future business growth, including onward lending and general corporate purposes, and to ensure compliance with capital adequacy norms prescribed by the Reserve Bank of India.

Founded in 2010, Truhome Finance was earlier known as Shriram Housing Finance Limited, a wholly owned subsidiary of Shriram Finance Limited. The company was acquired in December 2024 by global private equity firm Warburg Pincus.

Truhome Finance is a retail-focused affordable housing finance company offering secured lending products including housing loans, loans against property and related offerings. As of December 31, 2025, the company had an average ticket size of ₹2.13 million and operated through a pan-India network of 216 branches across 19 states and union territories, covering metropolitan as well as Tier I, II and III cities.

The company had served over 110,000 customers as of December 2025. Self-employed borrowers accounted for 76.96% of its assets under management (AUM), among the highest proportions within its identified peer set. Additionally, 85.32% of AUM was linked to customers with CIBIL scores of 700 and above, while 94.78% of loans had women as applicants or co-applicants.

As of December 31, 2025, Truhome Finance reported AUM of ₹21,124.32 crore, making it the third-largest affordable housing finance company in India by AUM. The company also recorded the fastest AUM growth among its peers over FY23–FY25 with a CAGR of 48.58%.

Housing loans account for 57.37% of its AUM with an average ticket size of ₹1.91 million, while loans against property contribute 39.22% with an average ticket size of ₹2.07 million. Other loan products account for 3.41% of AUM.

During the nine months ended December 2025, the company disbursed loans worth ₹6,382.45 crore and remained among the fastest-growing players in the affordable housing segment, with a disbursement CAGR of 31.14% between FY23 and FY25.

Asset quality remained stable with gross stage-3 assets at 1.60% and net stage-3 assets at 1.09% as of December 2025, while 30+ days past due stood at 3.15%.

The company’s sourcing network includes over 3,000 in-house sales personnel, 6,600 connectors and 821 direct selling agents (DSAs). Its borrowings are sourced from 48 lenders including public and private sector banks, foreign banks and financial institutions through instruments such as term loans, external commercial borrowings (ECBs), National Housing Bank refinance, non-convertible debentures (NCDs) and securitisation.

In terms of financial performance, Truhome Finance reported a profit after tax (PAT) of ₹333.53 crore for the nine months ended December 2025, with a return on assets (RoA) of 2.66% and return on equity (RoE) of 11.62% (annualised). Total income rose from ₹780.50 crore in FY23 to ₹1,905.48 crore in FY25, while PAT increased from ₹137.75 crore to ₹286.24 crore over the same period.

Operating expenses as a percentage of disbursements increased from 4.87% in FY23 to 7.17% in FY25, reflecting business expansion and higher operating scale.

The company recently appointed former Dinesh Kumar Khara, ex-chairman of State Bank of India, as its chairperson for a five-year term. The management team is led by managing director and CEO Ravi Subramanian, who has over three decades of experience in financial services.

The IPO is being managed by JM Financial Limited, IIFL Capital Services Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited.