Housing finance company Truhome Finance has recently filed its Draft Red Herring Prospectus with SEBI. The lender plans to raise Rs 3,000 crore via its public offering.

The IPO will be a book-built issue comprising fresh issuance worth Rs 1,500 crore, while the remaining Rs 1,500 crore will be offloaded via the offer for sale route.

Here are three key details you must know about the Truhome Finance IPO:

#1 Truhome Finance IPO: Issue size and Lead Managers

    Of the total float worth Rs 3,000 crore, Truhome will raise Rs 1,500 crore via issuance of fresh equity shares, each having a face value of Rs 10. The company’s promoter group, Mango Crest Investment, is also offloading equity shares worth Rs 1,500 crore, with each share having a face value of Rs 10.

    ALSO READ

    JM Financial, IIFL Capital Services, Jefferies India, and Kotak Mahindra Capital are handling the company’s IPO, while KFin Technologies is the registrar to the issue.

    #2 Truhome Finance IPO: Utilisation of Net Proceeds

      As per the lender’s DRHP, it will utilise the funds raised via the fresh issue towards increasing its capital base. It added that the raised proceeds will be directed to meet the company’s future capital requirements, which include onward lending.

      Also, a portion of the raised capital will be used to meet offer-related expenses, which include listing fees, the amount payable to BRLM and legal counsels, fees payable to auditors, brokerages, and various other miscellaneous expenses.

      ALSO READ

      The housing finance company added that the raised proceeds will be deployed over the course of FY27 and FY28.

      #3 Truhome Finance IPO: Key Risks

        With every offering comes some risk. The company has stated that its financial performance is highly dependent on housing loans and loans against property. As per Truhome’s DRHP, the majority of its customers are self-employed individuals, making it vulnerable to higher credit and collection risks.

        Also, the risk of loan default, related-party transactions, dependence on direct selling agents, and high AUM concentration in the states of Maharashtra, Gujarat, and Tamil Nadu can hamper the company’s financial performance, the company added.