Truhome Finance Limited IPO

IPO Details

• Open date: TBA
• Close Date: TBA
• Minimum Investment: To be updated
• Lot Size: TBA
• Price Range: TBA
• Listing: BSE, NSE
• Issue Size: ₹3,000 crores (Fresh Issue ₹1,500 Cr + OFS ₹1,500 Cr)
• Listing Date: TBA

IPO Timeline

• Bidding Start: TBA
• Bidding Ends: TBA
• Allotment Finalisation: TBA
• Refund Initiation: TBA
• Demat Transfer: TBA
• Listing: TBA

About Truhome Finance Limited

Incorporated in 2010, Truhome Finance Limited is a retail-focused affordable housing finance company offering secured lending products including housing loans and loans against property. As of December 31, 2025, the company operates 216 branches across 19 states and union territories, serving a diverse customer base with an average ticket size of ₹2.13 million. With 5,095 permanent employees, the company combines technology-enabled collections and robust underwriting capabilities, particularly for self-employed customers, to drive inclusive financial access across India.

Truhome Finance Limited IPO Overview

Truhome Finance Ltd. received SEBI approval for its IPO on June 1, 2026, following the DRHP filing on March 9, 2026. The book-built issue totals ₹3,000 crores, comprising a fresh issue of ₹1,500 crores and an Offer for Sale of ₹1,500 crores. The equity shares (face value ₹10) will list on BSE and NSE. JM Financial Ltd. is the book-running lead manager, and Kfin Technologies Ltd. is the registrar. Promoter and pre-issue shareholding details are yet to be disclosed for the OFS portion. The IPO dates, price band, and lot size are TBA. The net proceeds from the fresh issue will be used to augment the company’s capital base for onward lending and future growth.

Truhome Finance Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Up to ₹3,000 Crores (approx. [●] shares)
Fresh Issue	₹1,500 Crores ([●] shares)
Offer for Sale (OFS)	₹1,500 Crores ([●] shares)
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post-issue	TBA

IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Truhome Finance Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Offer
Retail Shares Offered	Not less than 35% of the Net Offer
NII (HNI) Shares Offered	Not less than 15% of the Net Offer

Truhome Finance Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹7.34
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	8.75%
Net Asset Value (NAV)	₹86.78
Return on Equity (RoE)	8.75%
Return on Capital Employed (RoCE)	7.39%
EBITDA Margin	71.74%
PAT Margin	18.45%
Debt to Equity Ratio	3.23

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Augmenting the capital base of our Company to meet future capital requirements including onward lending, arising out of the growth of our business	[●]
Total	[●]

The net proceeds from the fresh issue will be deployed over the course of Financial Years ended March 31, 2027 and March 31, 2028.

Truhome Finance Limited Financials (₹ in million)

Particulars	31 Dec 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	1,81,060.56	1,51,404.12	1,18,208.19	77,335.61
Revenue (from operations)	18,073.43	19,045.21	14,248.37	7,794.63
Profit After Tax	3,335.35	2,862.41	2,174.35	1,377.54
Reserves and Surplus	37,026.64	29,777.78	11,962.44	9,731.41
Total Borrowings	1,34,878.58	1,13,244.93	96,171.70	62,911.51
Total Liabilities	1,39,233.30	1,17,037.90	98,970.85	64,343.74

Financial Status of Truhome Finance Limited

SWOT Analysis of Truhome Finance Limited

Strengths	Weaknesses
Fastest growing affordable housing finance company by AUM CAGR	Higher Gross NPA of 1.60% compared to some larger peers
Second most cost-efficient in operating expenses to disbursements	Relatively lower RoNW of 8.33% vs industry average
Strong underwriting expertise for self-employed customers	Concentration in affordable housing segment with limited product diversity
Pan-India distribution network of 216 branches across 19 states	Branch productivity still ramping up in newer Tier III locations
Experienced management team backed by marquee global PE firm	Dependence on third-party DSAs for a portion of sourcing
Technology-enabled collections framework with AI integration	Lower employee productivity compared to FY24 levels
Well-diversified liability profile with 40+ lenders	Scale still smaller than top-tier listed HFC peers
AA rating from CRISIL, India Ratings, and CARE	Limited international borrowing access compared to larger HFCs
Strong capital adequacy (CRAR 37.76%) well above regulatory requirement	Recent rapid branch expansion may pressure near-term margins
Opportunities	Threats
Deepening penetration in Tier III and rural housing markets	Intense competition from banks and larger HFCs
Expanding salaried customer segment alongside core self-employed focus	Rising interest rate environment affecting borrowing costs
Leveraging co-lending and direct assignment for capital efficiency	Regulatory changes in affordable housing or NHB guidelines
Technology-led operating leverage to improve cost-to-income ratio	Economic slowdown impacting self-employed income stability
Potential credit rating upgrade to AA+ reducing cost of funds	Asset quality stress in case of prolonged regional downturns
Tapping into government affordable housing schemes (PMAY)	Cybersecurity risks and technology platform disruptions
Cross-selling other secured loan products to existing customers	Employee attrition in high-growth branch expansion phase
Increasing share of low-cost NHB refinance and ECB borrowings	Fluctuations in property prices impacting loan-to-value ratios
Geographic expansion into under-penetrated states	Legal and recovery delays in foreclosure proceedings

Truhome Finance Limited IPO Strengths

Fastest Growing AUM Among Affordable HFCs

Truhome Finance Limited has demonstrated the fastest AUM CAGR among its identified peers, with AUM growing from ₹80,465.96 million in FY23 to ₹211,243.27 million as of December 2025. This exceptional growth trajectory reflects the company’s ability to scale rapidly while maintaining underwriting discipline, driven by strategic branch expansion and deep penetration in underserved geographies.

Second Most Cost-Efficient Operations

The company ranks as the second most cost-efficient affordable housing finance company in terms of operating expenses to disbursements. For the nine months ended December 2025, operating expenses to disbursements stood at 7.53%, reflecting disciplined cost management, technology adoption, and productivity improvements that enable the company to maintain healthy spreads even in a competitive pricing environment.

Established Underwriting for Self-Employed Customers

Truhome Finance Limited has built deep underwriting capabilities for self-employed customers, who constitute 76.96% of its AUM as of December 2025. This segment remains largely underserved by traditional banks, and the company’s ability to assess income stability, business continuity, and repayment capacity through proprietary methods gives it a significant competitive advantage in tapping this large market.

Well-Diversified Pan-India Distribution Network

With 216 branches across 19 states and union territories as of December 2025, the company operates a well-diversified sourcing network. Its calibrated branch expansion strategy—starting from metropolitan and Tier I cities before penetrating Tier II and Tier III locations—ensures operational stability, local market expertise, and consistent execution, enabling scalable reach across high-growth districts.

Robust Credit Assessment, Monitoring, and Collections Systems

Truhome Finance Limited has implemented comprehensive systems for credit assessment, real-time portfolio monitoring, and proactive collections. Its technology-enabled collections framework integrates AI-driven tools like Credit Nirvana for early warning signals, automated reminders, and voice bots, resulting in strong asset quality with Gross NPA of 1.60% and Net NPA of 1.09% as of December 2025.

Well-Invested Technology Platform Driving Operating Efficiency

The company’s integrated technology stack—hosted on AWS with Salesforce for origination, Pennant for loan servicing, and Snowflake for data analytics—drives efficiency across the customer lifecycle. With ₹319.93 million invested in technology augmentation during the nine-month period, the platform enables faster TAT, digital onboarding, data-led underwriting, and seamless collections, positioning the company for sustained operating leverage.

Other IPO Pages Linking

More About Truhome Finance Limited

Truhome Finance Limited (formerly Shriram Housing Finance Limited) is a retail-focused affordable housing finance company that has transformed into one of India’s fastest-growing HFCs. Since its incorporation in 2010, the company has built a strong franchise around serving creditworthy but underserved self-employed customers, offering housing loans and loans against property with an average ticket size of ₹2.13 million.

Distribution Footprint

• 216 branches across 19 states and union territories as of December 31, 2025
• Branch mix: Metropolitan & Tier I (29), Tier II (69), Tier III (118)
• 34.72% of branches opened within the last two years, indicating aggressive yet calibrated expansion
• Presence in 97%+ of operational pin codes through branch and DSA network

Customer & Portfolio Metrics

• Assets Under Management (AUM): ₹211,243.27 million as of December 2025
• Disbursements: ₹63,824.46 million for 9M FY26 (annualised run rate ~₹85,000 million)
• Customer mix: Self-employed (76.96% of AUM), Salaried (23.04%)
• Average ticket size: ₹2.13 million, true to affordable housing focus

Technology as a Differentiator

Truhome’s technology architecture is fully integrated across origination (Salesforce), loan management (Pennant), collections (Credit Nirvana), and accounting. The data lake on Snowflake, visualised via Tableau, enables real-time portfolio analytics, early warning detection, and productivity dashboards. Digital onboarding via e-KYC, DigiLocker, and e-signatures reduces turnaround time, while AI/ML tools support underwriting decisions. During 9M FY26, the company invested ₹319.93 million in technology, representing 6.66% of total operating expenses.

Funding and Credit Profile

The company boasts a well-diversified liability base with over 40 lenders, including private and public sector banks, foreign banks, NHB, and international ECB facilities (US$150 million raised in FY25-26). It is rated AA (Stable) by CRISIL, India Ratings, and CARE. As of December 2025, CRAR stood at a robust 37.76%, and Liquidity Coverage Ratio at 205.50%, with average cost of borrowing at 8.85% (annualised).

People & Culture

With 5,095 permanent employees, the company has received multiple “Great Place to Work” certifications (2022-2026). The average tenure of Key Managerial Personnel exceeds five years, ensuring leadership stability and strategic continuity.

Industry Outlook

India’s affordable housing finance industry is poised for robust growth, driven by favourable demographics, government initiatives, and a structural shift towards formal housing credit. The market for housing loans to the low- and middle-income segments (ticket size ₹2 lakh – ₹35 lakh) is estimated to grow at a CAGR of 18-20% over the next five years, reaching approximately ₹25-30 lakh crore by 2030.

Growth Drivers

• Urbanisation and nuclear families: India’s urban population is expected to reach 600 million by 2031, driving incremental housing demand.
• Government schemes: PMAY (Urban and Rural) has sanctioned over 1.2 crore houses; the extension of interest subvention schemes continues to boost demand.
• Rising affordability: Per capita income growth and stable property prices in Tier II/III cities improve home ownership viability.
• Under-penetration: Housing loan penetration in India is ~11% of GDP, compared to 50%+ in developed markets, indicating massive runway.
• Formalisation of credit: Self-employed and informal sector workers are increasingly seeking formal housing finance, aided by digitisation and alternative data underwriting.

Key Figures (as of 2025-26)

• Total HFC industry AUM: ~₹12 lakh crore (approx.)
• Affordable housing segment (ticket < ₹25 lakh): growing at 25%+ YoY
• Share of self-employed in affordable housing loans: 40-45%, presenting a large addressable market
• NHB refinance disbursements to HFCs: up 30% YoY in FY25

Within the affordable housing segment, the specific product categories that Truhome Finance focuses on—housing loans for self-employed individuals and loans against property—are expected to grow even faster. The self-employed segment’s credit gap is estimated at ₹5-7 lakh crore, as formal lenders have traditionally relied on salary slips. Fintech-enabled underwriting and cash-flow-based assessment are now unlocking this segment.

Challenges include rising interest rates impacting affordability, regulatory caps on interest spreads, and intense competition from banks (which now account for ~60% of housing loans). However, focused HFCs with strong underwriting, technology, and distribution in Tier II/III cities are well-positioned to gain market share.

How Will Truhome Finance Limited Benefit

• Ride the affordable housing wave: As one of the fastest-growing HFCs, the company will directly benefit from the projected 18-20% industry CAGR, especially in Tier II and Tier III cities where its branch network is deepening.
• Leverage self-employed underwriting expertise: With 77% of AUM from self-employed customers—a segment banks under-serve—the company will capture a large, high-yielding, and loyalty-rich market as formal credit adoption rises.
• Improve cost of funds post-IPO: The fresh capital infusion (₹1,500 Cr) will strengthen the capital base, potentially leading to credit rating upgrades and enabling lower-cost borrowings, thereby improving net interest margins.
• Drive operating leverage from technology investments: Integrated digital platforms (Salesforce, Credit Nirvana, Snowflake) will reduce per-unit processing costs, improve turnaround times, and enhance collections efficiency, boosting RoA and RoE over time.
• Expand through co-lending and securitisation: With a stronger balance sheet, the company can scale off-balance sheet financing via direct assignments and co-lending partnerships, improving capital efficiency without diluting asset quality.
• Capitalise on government push for affordable housing: Continued PMAY momentum and state-level stamp duty reductions will drive first-time home buyer demand, directly benefiting Truhome’s core ticket size segment.

Peer Group Comparison

The following table compares Truhome Finance Limited with its listed industry peers as at and for the Financial Year ended March 31, 2025 (source: DRHP). The company’s own valuation metrics (P/E, P/B) will be updated at price band finalisation.

Name of the company	Total Income (₹ in million)	Face Value (₹)	P/E (times)	EPS (Basic) (₹)	EPS (Diluted) (₹)	RoNW (%)	NAV (₹)
Truhome Finance Limited	19,054.81	10.00	[●]	7.34	7.33	8.33%	74.61
Peer Group
Aadhar Housing Finance Limited	31,089.10	10.00	21.72	21.43	20.85	14.31%	147.72
Aavas Financiers Limited	23,584.15	10.00	17.12	72.54	71.97	13.17%	550.96
Aptus Value Housing Finance India Limited	17,984.02	2.00	15.22	15.04	15.01	17.40%	86.37
Home First Finance Company Limited	15,392.03	2.00	25.53	42.83	42.07	15.15%	279.97
India Shelter Finance Corporation Limited	11,759.30	5.00	20.50	35.18	33.93	13.95%	251.05

Key Strategies for Truhome Finance Limited

Further Grow Distribution Network to Deeper Tier III Cities and Beyond

Truhome Finance Limited intends to expand its branch network in a calibrated, phased manner—starting from metropolitan and Tier I cities for scale and stability, then deepening into Tier II and III locations. New branches are preceded by detailed demographic, credit behaviour, and demand studies. With 34.72% of branches opened in the last two years, the company expects productivity improvements as branches mature, driving higher AUM per branch and per employee.

Continue Expanding Customer Base with Focus on Self-Employed Segment

The company will sustain its strategic focus on underserved but creditworthy self-employed customers, while selectively increasing exposure to salaried customers in urban and peri-urban locations. This complementary approach leverages existing underwriting and distribution infrastructure. Sourcing will continue through a healthy mix of in-house sales teams, DSAs, connectors, and digital-led initiatives, maintaining strong credit quality metrics while scaling customer acquisition.

Drive Operating Leverage from Technology Investments

Truhome plans to further enhance operating leverage through its integrated technology platform (Salesforce, Pennant, Credit Nirvana, Snowflake/Tableau). As the rollout completes across all branches, the company expects faster turnaround times, reduced manual intervention, improved data quality, and more effective credit decision-making. Data lake analytics will generate deeper portfolio insights, identify early warning signals, and optimise resource deployment, contributing to improved profitability and cost efficiency over the medium term.

Further Diversify Borrowing Profile and Optimise Borrowing Costs

The company intends to strengthen relationships with existing lenders, tap new domestic and international capital pools, and increase the share of low-cost financing (NHB refinance, ECBs). Strategic use of off-balance sheet sources like direct assignments and co-lending will improve capital efficiency. Active asset-liability management, combined with a calibrated mix of fixed and floating rate borrowings (40.48% fixed, 59.52% floating as of Dec 2025), will help maintain stable spreads and resilience across interest rate cycles.

Attract, Develop and Retain High-Quality Talent Across the Organisation

With an experienced and stable leadership team (average KMP tenure >5 years) and multiple “Great Place to Work” certifications, Truhome will continue investing in training programmes, leadership development, and inclusive workplace culture. Long-term incentive mechanisms including employee stock options will align interests with growth objectives. Lateral hiring and internal career progression will build future leaders, supporting leadership continuity and sustained execution of the growth strategy.

FAQs

1. What is the total issue size of Truhome Finance IPO?

The IPO is ₹3,000 crores, comprising a fresh issue of ₹1,500 crores and an OFS of ₹1,500 crores.

2. Has SEBI approved the Truhome Finance IPO?

Yes, SEBI approved the IPO on June 1, 2026. The approval is valid for 12 months.

3. On which exchanges will Truhome Finance list its shares?

The equity shares are proposed to be listed on both BSE and NSE.

4. How can I apply for the Truhome Finance IPO?

You can apply via HDFC Sky using UPI-based ASBA (Application Supported by Blocked Amount).

5. When will the IPO open and what is the price band?

The IPO dates and price band are yet to be announced. Please check the RHP for updates.

Infographic Content

Truhome Finance Limited IPO Highlights

A retail-focused affordable housing finance company with 216 branches, 5,095 employees, and strong underwriting for self-employed customers (77% of AUM). Fastest growing AUM among peers.

• Offer Size: ₹3,000 Cr (Fresh Issue ₹1,500 Cr; OFS ₹1,500 Cr)
• Purpose: Net proceeds from fresh issue to augment capital base for onward lending and business growth.
• Financials (FY March 2025): Revenue ₹19,045 million; Profit After Tax ₹2,862 million.
• Listing: Mainboard IPO on BSE & NSE.