Truhome Finance IPO

Truhome Finance IPO is a book-built issue worth ₹3,000 crore. The IPO consists of a fresh issue of shares worth ₹1,500 crore and an offer for sale (OFS) of shares worth ₹1,500 crore.

JM Financial Limited, IIFL Capital Services Limited, Jefferies India Private Limited and Kotak Mahindra Capital Company Limited are the book-running lead managers to the issue, while KFin Technologies Limited is the registrar. For detailed information on the company's financials, business operations, and associated risks, investors are advised to refer to the Truhome Finance IPO DRHP.

About Truhome Finance Limited

Truhome Finance Limited was originally incorporated as Shriram Housing Finance Limited on December 27, 2013, as a public limited company under the Companies Act, 1956. Pursuant to the acquisition of the company by Mango Crest Investment Ltd and subsequent corporate restructuring, the company was renamed Truhome Finance Limited in December 2024.

The company is a housing finance company focused on providing home loans, loans against property, construction loans and other mortgage-backed lending solutions to retail customers across India. It primarily caters to customers from the low and middle-income segments, with a significant focus on self-employed borrowers who are generally underserved by traditional financial institutions.

Truhome Finance has established a diversified distribution network comprising branches, in-house sales teams, direct selling agents, connectors and digital sourcing channels. Its business model is centred on expanding access to housing finance in semi-urban and emerging markets while maintaining a granular retail loan portfolio.

The company has developed robust underwriting, collection and portfolio monitoring systems, supported by cash flow-based credit assessment, property verification processes, legal and technical due diligence, and technology-enabled analytics. These capabilities have supported asset quality management and operational efficiency across its lending operations.

Truhome Finance has also undertaken a significant technology transformation, implementing cloud-based digital infrastructure that supports loan origination, servicing, collections, analytics, accounting and reporting functions. The company’s growth strategy focuses on strengthening its capital base, expanding its geographic presence, deepening penetration among self-employed customers, leveraging digital capabilities and increasing its share in India's growing housing finance market.

Industry Outlook

• India’s housing finance market continues to benefit from favourable demographics, rapid urbanisation, rising household formation and increasing aspirations for home ownership.
• Government initiatives supporting affordable housing, infrastructure development and financial inclusion are expected to strengthen long-term demand for residential housing finance across the country.
• Housing finance remains underpenetrated relative to the size of the economy, creating significant opportunities for lenders to expand credit access, particularly in semi-urban and rural markets.
• The affordable and emerging-affluent customer segments are expected to remain key drivers of growth, supported by rising incomes and increasing formalisation of economic activity.
• Self-employed borrowers represent a large and underserved market segment, creating substantial opportunities for specialised housing finance companies with customised underwriting capabilities.
• Technology-driven lending models, digital origination platforms and advanced analytics are transforming customer acquisition, credit assessment and servicing processes across the sector.
• The housing finance industry remains competitive, with housing finance companies, banks and non-banking financial institutions focusing on distribution reach, product innovation, operational efficiency and asset quality as key differentiators.

Truhome Finance IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Augment the capital base of the company.
• Support future capital requirements arising from business growth.
• Strengthen the company’s capital adequacy position.
• Provide additional resources for onward lending activities.
• Enhance the company’s ability to grow its assets under management.
• Support expansion of its housing finance business across target markets.
• Meet expenses related to the offer in accordance with applicable regulations.

Financial Performance of Truhome Finance Limited

Truhome Finance Limited Peer Details Comparison

Strengths and Opportunities of Truhome Finance IPO

1. Strong presence in the housing finance sector with a focus on underserved customer segments.
2. Significant expertise in lending to self-employed borrowers through specialised underwriting frameworks.
3. Diversified distribution network comprising branches, connectors, DSAs and in-house sales channels.
4. Granular retail loan portfolio that reduces concentration risk.
5. Robust credit assessment, monitoring and collection systems supporting asset quality.
6. Scalable technology-driven operating platform covering the entire lending lifecycle.
7. Experienced management team with deep expertise in housing finance and retail lending.
8. Opportunity to benefit from increasing housing demand and affordable housing growth across India.
9. Ability to leverage additional capital from the IPO to accelerate business expansion and loan growth.

Risks and Threats of Truhome Finance IPO

1. The business is highly dependent on the performance of the housing finance and real estate sectors.
2. Any deterioration in asset quality may adversely affect profitability and financial performance.
3. A significant portion of the loan book consists of self-employed borrowers, who may face greater income volatility.
4. Changes in interest rates could impact borrowing costs, spreads and loan demand.
5. The company operates in a highly competitive market with banks, HFCs and NBFCs competing for customers.
6. Regulatory changes by the Reserve Bank of India or other authorities could affect operations and capital requirements.
7. Economic slowdowns or adverse macroeconomic conditions may reduce credit demand and increase delinquencies.
8. Dependence on continued access to funding and borrowings remains critical for business growth.
9. Failures in technology systems, cybersecurity incidents or operational disruptions could adversely impact business operations.

Truhome Finance IPO Reservation

Truhome Finance IPO Promoter Holding

The promoter selling shareholder is Mango Crest Investment Limited.

Truhome Finance IPO Prospectus

• Truhome Finance IPO DRHP

Truhome Finance IPO Registrar and Lead Managers

Truhome Finance IPO Lead Managers

• M Financial Limited
• IIFL Capital Services Limited
• Jefferies India Private Limited
• Kotak Mahindra Capital Company Limited

Registrar for Truhome Finance IPO

KFin Technologies Limited

• Contact Number: 040-79615565
• Email Address: ipo@kfintech.com

Truhome Finance IPO Registrar

How To Apply for Truhome Finance IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Truhome Finance IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Truhome Finance IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

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Contact Details of Truhome Finance IPO

Registered Office: Srinivasa Towers, 1st Floor, Door No. 5, Old No.11, 2nd Lane, Cenotaph Road, Alwarpet, Teynampet, Chennai, Tamil Nadu, 600018.

Phone: 4241 0400

E-mail: sect@truhomefinance.in