Truhome Finance IPO Approved by Shareholders – FY25 Profit ₹286 Crore, Listing Soon?

The Indian IPO market continues to see strong activity, and another housing finance player is now preparing to enter the public markets. Truhome Finance Limited, formerly known as Shriram Housing Finance Limited, has officially received shareholder approval to proceed with its Initial Public Offer (IPO).

This development follows an Extraordinary General Meeting (EGM) held on February 20, 2026, where multiple key resolutions — including IPO approval — were passed. With solid FY25 financial performance and backing from a well-known financial services group, the company appears to be positioning itself strategically for a public listing.

In this detailed article, we will cover:

• Truhome Finance IPO approval update

• EGM highlights

• Financial performance (FY25)

• Group restructuring and name change

• Business model and operations

• What this means for investors

---

Truhome Finance IPO Approved by Shareholders

At the EGM held on February 20, 2026, shareholders approved the proposal to launch an Initial Public Offer of equity shares. The resolution was passed as a Special Resolution, which indicates strong shareholder backing and formal authorization to proceed with IPO-related processes.

This approval allows the company to:

• Move ahead with regulatory filings (DRHP/RHP)

• Finalize issue structure and size

• Appoint merchant bankers and intermediaries

• Prepare for listing on stock exchanges

The proceedings of the EGM were formally submitted to BSE Limited under Regulation 51 of SEBI’s Listing Obligations and Disclosure Requirements.

While the exact IPO launch date and issue size are not yet announced, shareholder approval is a crucial milestone in the IPO journey.

---

EGM Highlights: Key Resolutions Passed

The Extraordinary General Meeting was conducted via Video Conference (VC)/Other Audio-Visual Means (OAVM). The meeting began at 3:00 PM and concluded at 3:15 PM. A total of 12 members attended either personally or through authorized representatives.

The meeting was chaired by Dinesh Kumar Khara, who serves as Non-Executive Director and Chairperson of the Board.

Major Resolutions Approved:

1. Approval of Initial Public Offer (IPO)

2. Increase in investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)

3. Increase in borrowing powers of the company

4. Creation of charge/security in respect of borrowings

5. Appointment of Dinesh Kumar Khara as Non-Executive, Non-Independent Director

6. Modification of ESOP Scheme 2016

7. Modification of ESOP Scheme 2025

8. Adoption of amended and restated Articles of Association

All resolutions were passed successfully.

These approvals indicate that the company is not only preparing for IPO but also strengthening governance, capital structure, and operational flexibility before listing.

---

FY25 Financial Performance (Audited)

Strong financial performance often plays a key role in IPO timing. For the financial year ended March 31, 2025, the company reported solid numbers.

Key FY25 Figures (Converted to Crores):

• Total Income: ₹1,905.48 crore

• Total Expenses: ₹1,535.09 crore

• Net Profit: ₹286.24 crore

 What These Numbers Indicate:

1. The company is profit-making, which is positive for IPO investors.

2. A net profit of ₹286 crore shows operational stability.

3. Strong total income reflects healthy loan book activity and revenue generation.

Profitability before IPO improves investor confidence and may support better valuation during listing.

---

Name Change: From Shriram Housing Finance to Truhome Finance

The company was earlier known as Shriram Housing Finance Limited. It has now rebranded itself as Truhome Finance Limited.

Such rebranding often happens due to:

• Group restructuring

• Strategic repositioning

• Brand alignment

• Preparing for independent identity before IPO

The rebranding signals a new phase in the company’s growth journey, especially as it moves toward public markets.

---

Group Structure & Restructuring Background

Truhome Finance is part of the well-known Shriram Group, a diversified financial services conglomerate in India.

Over the years, the group underwent major restructuring. The transport finance business and other financial services entities were consolidated, and eventually, Shriram Transport Finance merged and rebranded into Shriram Finance Limited, which is now the flagship listed NBFC of the group.

Earlier, the housing finance business operated under the Shriram brand umbrella. Following restructuring and reorganization within the group, the housing finance vertical transitioned and later adopted the Truhome brand identity.

So yes, it is correct that:

• The group earlier had strong roots in transport finance.

• After consolidation, the main listed NBFC became Shriram Finance.

• The housing finance arm eventually rebranded to Truhome Finance.

This restructuring aligns businesses more clearly across lending segments like transport finance, MSME lending, and housing finance.

---

What Does Truhome Finance Do?

Truhome Finance operates in the housing finance sector.

Core Business Activities:

1. Home Loans – Financing for purchase or construction of residential properties.

2. Loan Against Property (LAP) – Secured loans against residential/commercial property.

3. Affordable Housing Loans – Catering to middle-income and emerging urban segments.

4. Balance Transfer Loans – Offering refinancing options to customers.

The housing finance sector in India has strong long-term growth drivers:

• Increasing urbanization

• Government housing schemes

• Rising middle-class demand

• Affordable housing push

• Low mortgage penetration compared to developed markets

By focusing on housing finance, the company participates in one of India’s structurally growing credit segments.

---

Why Increase in Borrowing Powers Matters

At the EGM, shareholders also approved an increase in borrowing powers and creation of security in respect of borrowings.

This is important because:

• Housing finance companies depend on borrowed funds to lend further.

• Higher borrowing limits allow expansion of loan book.

• It supports business growth before and after IPO.

Such approvals usually indicate that management is preparing for scale expansion.

---

NRI/OCI Investment Limit Increase – Why It’s Significant

The company also approved increasing investment limits for NRIs and Overseas Citizens of India.

This could indicate:

• Expectation of foreign participation in the IPO

• Stronger international investor interest

• Broadening the shareholder base

In many IPOs, NRI participation plays a meaningful role, especially in financial services offerings.

---

ESOP Modifications Before IPO

Modifications to Employee Stock Option Schemes (2016 and 2025) were also approved.

Before IPOs, companies often:

• Align ESOP structures

• Adjust vesting terms

• Clean up capitalization tables

This ensures transparency and clarity in shareholding before listing.

---

Corporate Governance Strengthening

Adoption of amended Articles of Association is another important pre-IPO step.

Typically, Pre-IPO amendments include:

• Listing-related compliance clauses

• Investor protection provisions

• Board structure clarity

• Governance alignment with SEBI norms

This ensures the company is structurally ready to operate as a publicly listed entity.

---

What This IPO Could Mean for Investors

Although the issue size, valuation, and dates are not yet public, some early indicators are visible:

Positives:

• Profit-making company

• Backed by a reputed financial group

• Operates in high-growth housing finance sector

• Corporate restructuring already completed

• Governance approvals in place

Points to Watch:

• Valuation at IPO

• Asset quality (NPAs)

• Loan book growth rate

• Cost of funds

• Competitive landscape

Housing finance companies are sensitive to interest rate cycles and real estate demand trends, so those factors will also matter when the RHP is filed.

---

Is There a Shareholder Quota?

As of the EGM filing, there is no mention of a shareholder reservation quota. Such details, if applicable, will be disclosed in the Red Herring Prospectus (RHP).

Since the broader group already has a listed NBFC entity, the possibility exists — but confirmation will only come through official IPO documents.

---

Extraordinary General Meeting of Truhome Finance Limited

---

Timeline: What Happens Next?

After shareholder approval, the typical IPO process involves:

1. Draft Red Herring Prospectus (DRHP) filing

2. SEBI observations

3. RHP filing

4. Price band announcement

5. IPO subscription window

6. Listing on stock exchanges

The company has cleared the internal approval stage. Regulatory filings will be the next key milestone to watch.

---

Truhome Finance Limited has taken a decisive step toward becoming a publicly listed company by securing shareholder approval for its IPO at the February 20, 2026 EGM. Alongside this, the company strengthened its governance structure, increased borrowing flexibility, modified ESOPs, and aligned its Articles of Association for listing readiness.

With FY25 total income of ₹1,905 crore and net profit of ₹286 crore, the company enters the IPO phase as a profitable housing finance player. Its transition from Shriram Housing Finance to Truhome Finance marks a new chapter under the broader Shriram Group restructuring, following consolidation that led to Shriram Finance becoming the flagship listed NBFC.

As India’s housing demand continues to grow, this upcoming IPO could attract significant investor attention. However, valuation, asset quality, and growth trajectory will ultimately determine its long-term market performance.

Also Read – Mukesh Ambani’s ₹10 Lakh Crore AI Plan: How Reliance Wants to Make India the Global AI Superpower

Also Read – InsuranceDekho IPO: Girnar Insurance Brokers Plans $250 Million Public Issue in India