Truhome Finance Limited IPO

01At a glance

What the company does: lends against homes: housing loans were 57.37% and loans against property 39.22% of assets under management at December 2025, with an average ticket of ₹2.13 million (DRHP p.23, DRHP p.26).

Who pays it: mainly self-employed borrowers, 76.96% of assets under management, across 216 branches in 19 states and union territories; Maharashtra, Gujarat and Tamil Nadu were 49.70% of the book (DRHP p.27, DRHP p.122).

Why it is raising money: to add to its capital base for onward lending (DRHP p.24).

How fast it has grown: assets under management rose 71.02% in FY24 and 29.08% in FY25, to ₹211,243.27 million at December 2025 (DRHP p.122).

The one thing to understand: a lender recapitalised by its new owner and now growing on that capital. Net worth rose from ₹19,237 million in March 2024 to ₹41,827 million in December 2025, capital adequacy from 24.38% to 37.76%, and debt to equity fell from 5.00 to 3.22 (DRHP p.25, DRHP p.123). Return on assets was 2.12% in FY25 and 2.66% annualised in the nine months (DRHP p.122).

02The business, in plain words

A housing finance company borrows from banks and bond markets and lends to households, secured by the home or other property, earning the spread between its lending rate and its cost of funds.

A self-employed shop owner in a Tier II town in Gujarat wants to build a house → a direct selling agent brings the application to Truhome → the company appraises income and the property and lends about ₹2 million → the borrower repays monthly over many years.

Loans sourced through direct selling agents and connectors were 71.14% of outstanding loan accounts at December 2025 (DRHP p.27). The average yield was 12.70% and the average cost of borrowing 8.85%, annualised, in the nine months (DRHP p.122).

Earnings equation: Profit ≈ average loans × (yield − cost of borrowing) − operating cost − credit losses. Net interest income was ₹5,800.14 million in the nine months to December 2025 (DRHP p.27).

03Where the money comes from

Source: DRHP p.122. 9M FY26 is nine months to December 2025; AUM and branches are at period end.

Source: DRHP p.122.

04The growth record

Source: DRHP p.25, DRHP p.122. Nine-month ratios are annualised.

Revenue from operations was ₹7,794.63 million in FY23 and ₹19,045.21 million in FY25 (DRHP p.299). Other income was ₹9.60 million in FY25, 0.3% of profit before tax of ₹3,703.87 million (our arithmetic, DRHP p.299). Net cash used in operating activities was ₹23,965.01 million in FY25 (DRHP p.300).

05What the growth is made of

Branch expansion and larger loan books. The branch count rose from 131 to 216 and staff from 1,753 to 5,095 between March 2023 and December 2025 (DRHP p.122). Disbursements fell 6.07% in FY25, the first year under the new owner, then reached ₹63,824 million in nine months (DRHP p.122). Fee and commission income grew faster than interest income (DRHP p.122).

06Earnings quality

Credit quality has weakened slightly as the book has grown: gross NPA rose from 0.93% in March 2023 to 1.60% in December 2025, and net NPA from 0.70% to 1.09% (DRHP p.122, DRHP p.123). The company has 671 SARFAESI recovery proceedings involving ₹1,682.58 million, and borrowers have filed challenges to its recovery actions involving ₹1,544.10 million (DRHP p.26). There are no qualifications by the joint statutory auditors that have not been given effect in the restated statements (DRHP p.26).

07The balance sheet

Source: DRHP p.25, DRHP p.123.

Net worth rose ₹15,129 million in FY25 while profit was ₹2,862 million, which the document describes as growth capital infused after the acquisition (our arithmetic, DRHP p.25, DRHP p.208).

08What the money is for

Source: DRHP p.23, DRHP p.24.

A pre-IPO placement of up to ₹3,000 million may reduce the fresh issue (DRHP p.23).

09Who is selling

Source: DRHP p.23.

10Promoters

The promoter is Mango Crest Investment Ltd, incorporated in Mauritius on 24 March 2022 as an investment holding company (DRHP p.269). Its sole shareholder, Mulberry Inlet Investment Ltd, is owned by private equity funds managed or advised by affiliates of Warburg Pincus LLC (DRHP p.208). Mango Crest bought the company from Shriram Finance, its previous sole owner, in December 2024 (DRHP p.208). The document states that Mango Crest does not have experience in the company's line of business (DRHP p.269).

11Who already owns it

Source: DRHP p.24. The fully diluted basis assumes exercise of 1,911,665 vested options (DRHP p.24). The last row is our arithmetic.

12What changed just before the IPO

• Owner: from Shriram Finance to Mango Crest in December 2024 (DRHP p.208).
• Name: Shriram Housing Finance became Truhome Finance (DRHP p.1).
• Capital: CRAR up from 24.38% to 37.76% (DRHP p.123).
• Branches: 38 added in nine months (DRHP p.122).

The company has not issued bonus shares since incorporation (DRHP p.99). The last allotment in the capital history is 157,500 shares at ₹35 a share under the ESOP Scheme 2016 on 1 December 2025 (DRHP p.98). T. R. Chadha & Co. LLP completed its tenure as statutory auditor on 17 June 2024, when Mukund M. Chitale & Co. was appointed, and S. R. Batliboi & Co. LLP was appointed joint statutory auditor on 13 August 2025 (DRHP p.85, DRHP p.86). The company was incorporated as a public limited company, Shriram Housing Finance Limited, in November 2010 (DRHP p.247).

13Capacity and expansion

A lender's capacity is capital and funding: the fresh issue adds up to ₹15,000 million of equity to support lending, and the company had 216 branches at December 2025 (DRHP p.24, DRHP p.122).

14Market size and industry structure

The CRISIL report cited in the offer document says housing loans grew at 14.48% a year from FY21 to FY25 and projects 10 to 12% a year through FY28, and that banks hold a significant share while HFCs serve particular segments such as self-employed borrowers (DRHP p.23). Those projections are CRISIL's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Growth: AUM CAGR of 48.58% from FY23 to FY25 (DRHP p.27).
• Low cost of operations: operating expenses to disbursements of 7.53%, second lowest among peers identified by CRISIL (DRHP p.208).
• A self-employed focus in smaller cities (DRHP p.23).

Against that: rising NPAs from a low base, dependence on DSAs, and three states for half the book (DRHP p.27, DRHP p.123).

16Peers the company named

Source: DRHP p.121. Peer P/E uses prices on 4 March 2026. Peer price-to-book ratios range from 2.24 to 3.07 (DRHP p.120).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Products. Housing loans and loans against property are 97% of AUM (DRHP p.26).
• Borrowers. 77% self-employed, with higher credit risk (DRHP p.26, DRHP p.27).
• Growth. AUM grew 48.58% a year from FY23 to FY25 (DRHP p.27).
• Rates. Spread was 3.50% in FY25 (DRHP p.27).
• Sourcing. 71% of loan accounts via DSAs and connectors (DRHP p.27).
• Regulation. NHB inspections and RBI rules (DRHP p.27).

18Litigation and regulatory matters

Source: DRHP p.26. The amount by the company includes ₹1,682.58 million in 671 SARFAESI proceedings; the amount against it includes ₹1,544.10 million in challenges to its SARFAESI actions (DRHP p.26). Contingent liabilities include ₹572.16 million of income tax and ₹59.03 million of GST (DRHP p.27).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• What Mango Crest paid Shriram Finance for the company, in the pages read.
• How much capital was infused after the acquisition, as a stated figure, in the pages read.
• What the six criminal proceedings against the company concern.
• Asset quality by product or state, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How much capital did the new owner put in after December 2024, and at what price?
2. Why did disbursements fall in FY25?
3. What is driving the rise in gross NPA from 0.93% to 1.60%?
4. How much of the book was originated through the largest DSAs?
5. What stake will Mango Crest hold after the offer, and for how long is it locked in?

1Sources and cited facts

This study was read from 1 document the company filed. The 59 figures it cites are listed under the document each came from, with the page and the sentence as printed.