June 29 :The Warburg Pincus-backed affordable housing finance company formerly known as Shriram Housing Finance, is entering the capital markets with a story built around scale, speed and a sharply defined customer segment.
The company recently filed for a INR 3,000 crore initial public offering, comprising a fresh issue of INR1,500 crore and an offer for sale of INR 1,500 crore by promoter selling shareholder Mango Crest Investment Limited. It has received the regulators final observation too.
At the heart of the IPO story is a rapidly expanding loan book. As of December 31, 2025, Truhome Finance had assets under management of INR 21,124.33 crore, making it the third-largest affordable housing finance company in India by AUM among its identified peer set which includes include Aadhar Housing Finance, Aavas Financiers, Home First Housing Finance, Aptus Value Housing Finance, India Shelter Finance, Grihum Housing Finance, and Vastu Housing Finance. More significantly, the company has been the fastest-growing affordable housing finance company in India in terms of AUM CAGR over FY23, FY24 and FY25, at 48.58%.
The company’s growth has come at a time when India’s housing finance industry continues to benefit from structural demand drivers. According to the CRISIL Report, housing loan outstanding in India grew at a CAGR of 14.48% between FY21 and FY25 and is expected to grow at 10-12% through FY28, supported by rising ticket sizes, stable income growth, urbanisation and government support for affordable housing.
Truhome Finance’s positioning is focused on a segment that banks often find difficult to underwrite which is creditworthy self-employed borrowers with informal or semi-formal income streams.
As of December 31, 2025, self-employed customers accounted for 76.96% of the company’s AUM, the second-highest proportion among its identified peers. Salaried customers accounted for the balance 23.04%.
This is not a small niche – With banks being increasingly focused on high-ticket prime housing loans in metro and tier-I markets, typically above ₹5 million, housing finance companies have a significant opportunity in the low- and mid-ticket borrower base. Truhome Finance is positioned around typical housing finance requirements in the INR 2 million to ₹3.5 million range. Its average ticket size stood at ₹2.13 million as of December 31, 2025.
Housing loans remain the anchor of the portfolio. As of December 31, 2025, housing loans accounted for ₹12,120.06 crore, or 57.37% of AUM, while loans against property contributed INR 8,284.99 crore, or 39.22%. Other loans accounted for ₹719.28 crore, or 3.41%. The company disbursed INR 6,382.45 crore during the nine months ended December 31, 2025, with housing loans contributing 53.64% of disbursements and loans against property contributing 38.97%.
Truhome also brings a strong productivity story. It had the highest AUM per branch among peers at INR 1,072.30 million as of December 31, 2025, and the highest disbursements per branch for the nine months ended December 31, 2025, at ₹323.98 million.
The company served 110,257 active loan accounts as of the same date. Its distribution engine is now spread across 216 branches in 19 states and union territories, covering metropolitan, tier-I, tier-II and tier-III cities. During the nine months ended December 31, 2025, 56% of new branches opened were in tier-III cities, indicating a deeper push into underpenetrated markets.
The company’s geographic diversification is another key strength. No single state accounted for more than 18% of AUM as of December 31, 2025. Maharashtra contributed 17.84%, Gujarat 16.39% and Tamil Nadu 15.46%, together accounting for 49.70% of AUM. Truhome was also the second-most geographically diversified affordable housing finance company among peers identified by CRISIL.
Asset quality metrics remain central to the investment case. As of December 31, 2025, loans more than 30 days past due stood at 3.15% of gross loan assets, the second-lowest ratio among peers. Stage 3 loans were 1.60% of gross loan assets, while net Stage 3 loans were 1.09% of net loan assets. Collection efficiency stood at 99.05% during the nine months ended December 31, 2025, supported by over 429 in-house collection personnel.
Truhome’s borrower quality also appears strong. Customers with CIBIL scores of 700 and above accounted for 85.32% of AUM as of December 31, 2025, while 94.78% of loans included women as applicants or co-applicants. Average loan-to-value ratios stood at 56.60% for housing loans and 48.25% for loans against property, reflecting a conservative collateral approach.
On liabilities, Truhome had access to 48 lenders as of December 31, 2025, including public sector institutions, private sector institutions, foreign banks and financial institutions. It has also accessed international markets through a syndicated external commercial borrowing of $150 million over FY25 and FY26, including $40 million from Taiwanese banks. Its average cost of borrowings for the nine months ended December 31, 2025 was 8.85%, while average incremental borrowing cost stood at 7.86%.
Truhome Finance’s IPO comes at the intersection of three powerful themes: India’s expanding affordable housing credit market, the rising formalisation of self-employed borrowers, and the growing role of specialised HFCs in serving customers beyond the conventional banking grid.
With INR 21,124 crore in AUM, 110,257 active loan accounts, a 216-branch network, 76.96% exposure to self-employed customers and 99.05% collection efficiency, the company has built a scaled, productivity-led platform in a segment that remains structurally underpenetrated. Backed by strong capital adequacy, diversified borrowings and a conservative collateral approach, Truhome Finance is positioning itself not merely as another housing finance lender, but as a play on India’s next wave of home ownership, driven by small business owners, entrepreneurs and first-time borrowers across tier-II and tier-III markets.
