Shriram Finance Limited , a prominent player in the Indian financial services sector, has made a significant move in the debt market by allotting Non-Convertible Debentures (NCDs) worth Rs 750 crore. This allotment, approved by the company's Allotment Committee, marks the fourth issuance under the same ISIN, following previous issues in April and May 2025.

Key Details of the NCD Allotment

Pricing and Yield

The NCDs have been priced at Rs 1,07,313.59 per unit, which includes a premium of Rs 2,498.80 and accrued interest of Rs 4,814.79. This pricing structure results in an effective yield of 7.50% for investors.

Utilization of Funds

Shriram Finance has outlined that the proceeds from this NCD issuance will be utilized for various purposes, including:

• Augmenting long-term resources
• Financing various asset classes
• Onward lending
• Refinancing existing debt
• Meeting working capital requirements
• General corporate purposes

The company has emphasized that 100% of the proceeds will be used in accordance with statutory and regulatory requirements, including those set by the Reserve Bank of India (RBI).

Previous Issuances

This allotment is part of a series of NCD issuances by Shriram Finance under the same ISIN (INE721A07SL9). The previous issuances were:

• April 09, 2025: Rs 575.00 crore
• May 08, 2025: Rs 200.00 crore
• May 23, 2025: Rs 500.00 crore

Market Implications

The successful allotment of these NCDs indicates strong investor confidence in Shriram Finance's debt offerings. The 8.70% coupon rate appears attractive in the current market environment, potentially drawing interest from both institutional and retail investors seeking stable returns.

For Shriram Finance, this debt issuance provides an opportunity to diversify its funding sources and optimize its capital structure. The funds raised will enable the company to expand its lending activities and support its growth objectives in various financial service segments.

As the NCDs will be listed on the Wholesale Debt Market (WDM) segment of the BSE, it offers liquidity options for investors who may wish to trade these securities in the secondary market.

Shriram Finance , a prominent non-banking financial company (NBFC), has categorically denied media reports suggesting that Japan's Mitsubishi UFJ Financial Group (MUFG) was in advanced talks to acquire a 20% stake in the company for Rs 23,200 crore. The company's shares closed nearly 1% higher at Rs 617.00 on the day of the announcement.

Official Clarification

In an official statement to the stock exchanges, Shriram Finance stated, "The Company has clarified to the mainstream media that this is a rumour / speculation and has categorically denied the knowledge about information of such stake sale to any party." The company emphasized that it has no knowledge of any potential majority stake sale by shareholders and has not been approached by any shareholder expressing intention to sell their shares.

Reported Deal Details

The media reports, now refuted by Shriram Finance, had suggested that:

• MUFG was in advanced talks to acquire a 20% stake in Shriram Finance.
• The deal was reportedly worth Rs 23,200 crore.
• It would have been executed through primary share issuance.
• If true, it would have made MUFG the largest foreign investor in an Indian NBFC.

Current Shareholding Structure

Shriram Finance's current shareholding pattern, as per the latest available data, is as follows:

Company's Stance

Shriram Finance has urged investors to disregard any misleading information circulated in the media. The company stated, "We request you to take note of this clarification and disregard any misleading information that may have been circulated in the media."

The NBFC's prompt denial and clarification to the stock exchanges demonstrate its commitment to transparency and accurate information dissemination to its stakeholders.