TruHome Finance IPO: Housing Finance Company Receives Sebi Nod For Public Issue; Should You Apply?

Retail focused affordable housing finance company (HFC), TruHome Finance has received the nod from the Securities and Exchange Board of India (Sebi) for its Rs 3,000 crore public issue.

The HFC’s public issue consists of a fresh issuance of shares worth Rs 1,500 crore and an offer-for-sale (OFS) worth Rs 1,500 crore. Here is a look at some key details of the company’s public issue:

TruHome Finance IPO: Offer Details

The price band for the public issue has not been announced yet. According to the company’s draft red herring prospectus (DRHP), Mango Crest Investment will participate in the OFS and reduce its stake and will be the sole selling shareholder.

JM Financial, IIFL Capital Services, Jefferies India Private, and Kotak Mahindra Capital Company will act as the book-running lead managers to the issue, while KFin Technologies will be the registrar.

TruHome Finance IPO: Key Financials

The company’s assets under management (AUM) stood at Rs 21,124.33 crore as on December 31, 2025. According to the DRHP, TruHome Finance (formerly known as Shriram Housing Finance) posted a total income of Rs 1,807.36 crore and a profit after tax (PAT) of Rs 333.54 crore in the period ended December 31, 2025. In the financial year ended March 31, 2025 the company’s total income stood at Rs 1,905.48 crore, up by 33 per cent from Rs 1,425.35 crore in the preceding fiscal. The company’s PAT grew by 31 per cent year-on-year (y-o-y) to Rs 286.24 crore compared to Rs 217.44 in the preceding fiscal.

TruHome Finance: Business Model

TruHome Finance operates as a retail-focused affordable HFC registered as a non-deposit-taking HFC with the National Housing Bank. The company offers secured lending products, including housing loans, loans against property, and other customised financing options.

Loan disbursements to creditworthy self-employed customers contribute significantly to the company’s revenue. The company operates across metropolitan areas, Tier I, Tier II, and Tier III cities, minimising high concentration risks through technology-enabled operations. As on December 31, 2025, the company's retail loan portfolio maintained an average ticket size of Rs 21.30 lakh.

TruHome Finance: Competitors

TruHome Finance competes with several regional, national, and institutional players. Major peers in the affordable housing and retail housing finance space include Aavas Financiers, Home First Finance Company India, and India Shelter Finance Corporation.

TruHome Finance IPO: Should You Apply?

Here’s a look at the strengths and risks associated with the HFC, which investors must evaluate.

TruHome Finance: Key Risks

• The company’s business is significantly exposed to credit risks associated with its primary target segment of self-employed customers, who generally have more volatile income streams compared to salaried individuals.

• The company’s inability to maintain asset quality or control the levels of non-performing assets can negatively affect the company's financial condition and net interest margins.

• The company relies on market liquidity and its ability to access cost-effective funding sources; thus any changes in interest rates or domestic borrowing costs can potentially impact its cost of production and overall profitability.

TruHome Finance: Key Strengths

• The company has a pan-India presence across multiple states and geographies.

• The HFC claims to have a scalable, technology-backed operating model which assesses and services the underserved self-employed customer segment efficiently.

• The company has exhibited robust financial growth in its retail assets under management alongside a structured underwriting framework designed for affordable housing products.

TruHome Finance IPO: Objective

The proceeds from the fresh issue will be utilised by the company to augment its capital base to meet future capital requirements.