Truhome Finance has filed its Draft Red Herring Prospectus with SEBI to launch a Rs. 3,000 crore initial public offering. The IPO aims to raise funds for business expansion and to strengthen the company’s capital base. The housing finance company added that the raised proceeds will be deployed over the course of FY27 and FY28.
Housing finance company Truhome Finance has recently filed its Draft Red Herring Prospectus with SEBI. JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital are handling the company’s IPO, while KFin Technologies is the registrar to the issue.
According to the lender’s DRHP, it will utilise the funds raised via the fresh issue towards increasing its capital base. It added that the raised proceeds will be directed to meet the company’s future capital requirements, which include onward lending.
Of the total float worth Rs 3,000 crore, Truhome will raise Rs 1,500 crore via issuance of fresh equity shares, each having a face value of Rs 10. The company’s promoter group, Mango Crest Investment, is also offloading equity shares worth Rs 1,500 crore, with each share having a face value of Rs 10.
The company has stated that its financial performance is highly dependent on housing loans and loans against property. According to Truhome’s DRHP, the majority of its customers are self-employed individuals, making it vulnerable to higher credit and collection risks.
Also, the risk of loan default, related-party transactions, dependence on direct selling agents, and high AUM concentration in the states of Maharashtra, Gujarat, and Tamil Nadu can hamper the company’s financial performance, the company added.
Founded in 2010, the company was formerly known as Shriram Housing Finance. This retail-focused affordable housing lender was acquired by Warburg Pincus in December 2024. The company offers housing loans, loans against property, and other secured lending products, primarily catering to self-employed customers through a network of 216 branches across 19 states and Union Territories.