TruHome Finance Limited, an affordable housing finance company backed by Warburg Pincus, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore through an initial public offering (IPO). The offering includes a fresh issue of equity shares worth ₹1,500 crore, alongside an offer for sale (OFS) amounting to ₹1,500 crore from its promoter, Mango Crest Investment Limited, which currently owns a substantial 98.16% stake in the company. This move marks a significant step for the firm as it seeks to bolster its capital base and enhance its lending capabilities in the competitive affordable housing market.
Founded in 2010 by Ravi Subramanian, TruHome Finance has steadily established itself as a key player in the affordable housing sector, primarily providing secured retail lending products such as housing loans and loans against property. The company primarily targets self-employed borrowers and has reported impressive growth in its assets under management (AUM), currently standing at ₹21,124.3 crore with an average loan size of ₹21.3 lakh. The company claims the position of the third-largest affordable housing finance firm in India by AUM, with a robust distribution network that spans 19 states and union territories through 216 branches.
The proceeds from the fresh equity issue are earmarked for various strategic initiatives, including strengthening its capital base, meeting future capital requirements, and ensuring compliance with the capital adequacy norms mandated by the Reserve Bank of India (RBI). Furthermore, TruHome Finance is contemplating a pre-IPO round that could raise an additional ₹300 crore, which would be included in the fresh issue segment. This strategic approach reflects the company's commitment to maintaining a solid financial foundation while expanding its operational capabilities.
TruHome Finance has shown remarkable financial performance in recent fiscal periods, with FY25 witnessing a 31.6% increase in profit to ₹286.2 crore, compared to ₹217.4 crore in FY24. Additionally, net interest income surged 47.5% to ₹5,794 crore during the same timeframe, indicating robust growth in its lending activities. For the nine months ending December 2025, the company reported a profit of ₹333.5 crore, with net interest income at ₹580 crore. The IPO is being managed by a consortium of financial institutions, including JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital Company, who have been designated as book-running lead managers for the offering. The upcoming IPO not only highlights TruHome Finance's growth trajectory but also underscores the increasing investor interest in the affordable housing sector in India.