Affordable-housing lender Shubham Housing Finance, backed by Multiples Private Equity and Premji Invest, has initiated early discussions with investment bankers for a potential ₹2,000-crore initial public offering (IPO) that could be filed within the current financial year, according to two people aware of the development.
News of the Gurugram firm’s planned comes over a month after early investors in Shubham Housing Development Finance partially exited through a $96-million secondary transaction led by private equity firm Creador, with participation from existing investor LeapFrog Investments.
“Shubham has initiated preliminary talks with bankers. The contours of the issue are still being worked out,” said one of the people cited above. “A filing is being explored this fiscal year, subject to market conditions.”
Responding to Mint’s queries, chief financial officer Vishal Kanodia said the firm sees an IPO as a “logical next step” given its current stage, but added that “the matter has not been formally discussed or settled with all stakeholders”.
While Kanodia said banker interactions are part of the company’s regular course of business, he added that the firm is actively tracking market conditions. “The company is keeping a close watch on the market and will decide after looking at developments in the near future in consultation with stakeholders and the board,” he said.
Focus on first-time homebuyers
Founded in 2010 by Sanjay Chaturvedi and Rupa Basu, Shubham Housing Finance focuses on customers in the lower-income and informal segments. Its core strategy centres on first-time homebuyers and self-employed borrowers lacking formal income documentation.
The company has raised about $237 million to date from investors including Premji Invest, LeapFrog Investments, Alternate Asset Management and British International Investment. It has scaled to around ₹7,500 crore ($825 million) in assets under management as of December 2025, and operates more than 200 branches across 12 states.
According to financial disclosures sourced from Tracxn, Shubham reported revenue of ₹824 crore in FY25, up from ₹616 crore in FY24. Net profit was around ₹175 crore.
India’s home loan market was worth $430.74 billion in 2026 and is projected to reach $809.07 billion by 2031 at a compound annual growth rate of 13.44%. The market is riding on rapid urbanization and housing formation that now extends well beyond the metros into tier-2 and tier-3 cities as employment centers diffuse and transport, water, and sanitation networks expand, according to a report by Mordor Intelligence.
Public and private funding
If it does go ahead with its IPO plans, Shubham will join a growing list of specialised housing finance firms looking to tap the public markets as valuations improve and funding conditions ease. Last month, Warburg Pincus-backed Truhome Finance filed its draft papers with Sebi to raise ₹3,000 crore through an IPO. In January, Hindu BusinessLine reported, citing founder Nirmal Jain, that IIFL Finance’s board may consider listing its housing finance arm, IIFL Home Finance, through a demerger or similar structure.
Listed firms in the sector include Aavas Financiers, Home First Finance Company, PNB Housing Finance and LIC Housing Finance.
Meanwhile, the segment has also seen continued inflows of private capital. In August, Ummeed Housing Finance secured ₹250 crore from (BII), which also backed Altum Credo Home Finance in a ₹170 crore round. In March, Weaver Services Pvt. Ltd acquired a majority stake in Centrum Housing Finance after raising ₹1,450 crore from Premji Invest, Lightspeed Venture Partners, Gaja Capital and others.
Private equity firms have also begun exiting long-held bets. In September, Mint reported that WestBridge Capital sold its remaining stake in Aptus Value Housing Finance India Ltd via a block deal worth up to ₹2,600 crore.