Warburg backed TruHome Finance kick starts Rs 3000 crore IPO process

TruHome Finance's loan book was about Rs 20,000 crore in October this year, and is presently the third largest player in the affordable housing industry.  

Within a year of acquiring controlling stake in Shriram Housing Finance, now rebranded as TruHome Finance, Warburg Pincus backed affordable housing major is said to have kick-started the process of taking the company public.

According to sources, TruHome Finance is said to have roped in investment bankers, legal experts and other consultants to work on its initial public offering (IPO) this week. Sized at about Rs 3,000 crore, the issue is likely to be a combination of fresh issue of capital and a secondary sale by Warburg.

“The spilt between fresh issue and offer for sale will emerge as clarity is achieved on valuations,” said a person aware of the matter, but didn’t want to be named.

TruHome Finance's loan book was about Rs 20,000 crore in October this year, and is presently the third largest player in the affordable housing industry.

Kotak, IIFL Capital, JM Financial and Jefferies are said to have been roped in as investment bankers to lead the IPO. Sources add that the company aims to file its IPO documents with the capital market regulator by March next year, and targets listing by July – September quarter of FY27.

An email seeking confirmation from TruHome Finance regarding its listing preparations remained unanswered till publishing the article.

Warburg's portfolio entities

With a full exit from Home First Finance, where Warburg initially acquired a 25 percent stake in 2020, TruHome Finance is presently the US private equity major’s largest investment in India's housing finance market. It acquired the lender from Shriram Finance in May 2024, while the deal concluded in December that year.

Warburg holds over 95 percent stake in TruHome Finance.

Presently, its other major investments in the financial services sector include IDFC First Bank, education loans major Avanse Financial Services, SME lender Vistaar Finance. Prior to TruHome Finance, Warburg had plans to list Avanse and had received a go ahead from Sebi in October 2024. The plan had to be dropped, reportedly due to unfavourable market conditions. It would be interesting to see if TruHome, Warburg’s newest addition to its India financial sector portfolio, lists ahead of Avanse.