The primary market is gearing up for a massive entry as Truhome Finance Limited (formerly known as Shriram Housing Finance) prepares to launch its ₹3,000 crore public issue next month. Having recently secured SEBI approval, this Warburg Pincus-backed affordable housing financier is set to be one of the biggest financial sector listings of the season.
1. The IPO Structure & Timeline
The company filed its Draft Red Herring Prospectus (DRHP) earlier this year, and following SEBI’s official nod in June, the issue is expected to hit the mainboard exchanges (BSE & NSE) next month.
- Total Issue Size: ₹3,000 Crore
- Fresh Issue Component: ₹1,500 Crore (New capital entering the company to bolster Tier-1 capital and fuel onward lending)
- Offer for Sale (OFS): ₹1,500 Crore (Promoter entity Mango Crest Investment, backed by Warburg Pincus, making a partial exit)
- Tentative Timeline: Official subscription dates and the price band will be announced in the coming weeks for next month’s launch.
2. Company Profile & Financial Strength
Following its rebranding from Shriram Housing Finance in December 2024, Truhome Finance has emerged as one of India’s fastest-growing retail-focused affordable housing finance companies (HFCs). It primarily caters to individuals seeking residential property financing and loans against property (LAP).
Core Financial Highlights:
- Rapid Asset Expansion: The company crossed a massive milestone, recording an Assets Under Management (AUM) figure of ₹21,124 crore as of December 31, 2025. It boasts a compounding annual growth rate (CAGR) of 48.58% in AUM across recent fiscal years.
- Growing Network: To target deeper penetration in semi-urban and retail segments, Truhome expanded its branch network dramatically from 131 branches in FY23 to a projected 250 branches.
- Healthy Top & Bottom Line: For the 9-month period ending December 31, 2025, Truhome reported a total income of ₹1,807.34 crore with a Profit After Tax (PAT) of ₹333.54 crore, indicating a highly profitable run compared to typical loss-making fintech operations.
3. Unofficial Market Sentiment (Live GMP Status)
Because the official price band has yet to be declared by the book-running lead managers, the Grey Market Premium (GMP) is currently trading at “Nil” or flat.
What to watch out for: Grey market activity for institutional-backed housing finances typically switches on the moment the company announces its official per-share price range.
Once peer comparisons are evaluated alongside peer giants like Aavas Financiers and Home First Finance, the street’s premium appetite will become clearer.
4. Key Risks to Evaluate
- Borrowing Costs: As an HFC, Truhome relies on external borrowings (which stood at ₹13,487.86 crore as of Dec 2025). Any upward movement in RBI repo rates directly impacts their net interest margins (NIMs).
- Asset Quality: While rapid expansion is good, maintaining a low Gross NPA (Non-Performing Assets) ratio in the middle-to-low income retail segment is highly critical for long-term survival.
Lead Managers for the issue include JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital.