Shriram Finance Limited successfully concluded its Extra-Ordinary General Meeting (EGM) on January 14, 2026, with shareholders approving all three proposed resolutions with requisite majority. The meeting was conducted through video conferencing in compliance with Ministry of Corporate Affairs guidelines, demonstrating strong shareholder participation and support for the company's strategic initiatives.

Meeting Participation and Voting Framework

The EGM witnessed significant shareholder engagement with 110 shareholders attending through video conferencing/other audio-visual means, representing 46,99,18,538 equity shares. The voting process was structured to include both remote e-voting and e-voting at the meeting, ensuring comprehensive participation from the shareholder base.

Resolution 1: Preferential Equity Issue

The first special resolution regarding issuance of equity shares by way of preferential issue on a private placement basis received overwhelming shareholder support. The resolution achieved strong approval across all shareholder categories, with promoter and promoter group showing unanimous support.

Resolution 2: Special Investor Rights

The second special resolution for approving special rights granted to investors in accordance with SEBI Listing Regulations achieved even higher approval rates. This resolution demonstrated strong confidence in the company's strategic partnerships and governance framework.

Resolution 3: Non-Compete Payment Approval

The third ordinary resolution for approval of one-time, non-recurring payment to Shriram Ownership Trust for non-compete and non-solicit obligations was evaluated based on public shareholding votes, excluding promoter participation due to their interest in the matter.

Scrutinizer Report and Compliance

The voting process was overseen by P. Sriram, Practicing Company Secretary (Membership No. FCS 4862), who served as the appointed scrutinizer. The scrutinizer's report confirmed that all voting procedures were conducted in a fair and transparent manner, with proper reconciliation of votes cast through both remote e-voting and e-voting at the EGM.

The company utilized Central Depository Services (India) Limited (CDSL) as the authorized agency for providing e-voting facilities. The remote e-voting facility remained open for three days from January 11, 2026 (9:00 A.M. IST) to January 13, 2026 (5:00 P.M. IST), ensuring adequate opportunity for shareholder participation.

Meeting Outcome and Next Steps

All three resolutions were declared passed with the requisite majority as required under the Companies Act, 2013 and SEBI Listing Regulations. The successful approval of these resolutions enables the company to proceed with its planned strategic initiatives, including the preferential equity issue and implementation of special investor rights framework.

The EGM's successful conclusion reflects strong shareholder confidence in the company's strategic direction and governance practices. The high approval rates across all resolutions demonstrate alignment between management proposals and shareholder interests, positioning the company for its planned growth initiatives.

Shriram Finance Limited has received a fresh credit rating from CRISIL Ratings Limited for its fixed deposit programme. The rating agency assigned 'Crisil AA+/Watch Positive' rating to the company's ₹80,000 crore fixed deposit programme on January 14, 2026, as communicated to stock exchanges under Regulation 30 of SEBI Listing Regulations.

Strategic Investment Drives Rating Action

The rating assignment comes following Shriram Finance's significant corporate development announced on December 19, 2025. The company's Board of Directors approved definitive agreements with MUFG Bank Ltd for an investment of ₹39,618 crore ($4.40 billion) through preferential issue of equity shares.

MUFG Bank, Japan's premier bank with global operations across 50 countries, will gain special rights including board representation. The proposed transaction is expected to be consummated in 2026, subject to various regulatory and statutory clearances.

Comprehensive Rating Coverage

CRISIL's rating action extends beyond the fixed deposit programme, covering multiple debt instruments and facilities:

The rating agency has placed most long-term ratings on 'Rating Watch with Positive Implications' while reaffirming short-term ratings at 'Crisil A1+'.

Strong Market Position and Financial Metrics

Shriram Finance maintains its position as India's second-largest retail NBFC and third-largest non-bank financier. The company's diversified portfolio spans multiple segments:

The company's financial performance demonstrates robust fundamentals with assets under management of ₹2,81,309 crore as of September 30, 2025, compared to ₹2,63,190 crore as of March 31, 2025.

Capitalisation and Earnings Profile

Shriram Finance's capitalisation profile remains strong with healthy financial ratios:

The company reported net profit after tax of ₹4,474 crore during the first half of fiscal 2026, supported by stable credit costs of less than 2.00% and net interest margin of 8.80%.

Asset Quality Improvement

Shriram Finance has demonstrated consistent improvement in asset quality metrics. The Gross Stage 3 ratio remained stable at 4.60% as of September 30, 2025, compared to 5.50% as of March 31, 2024. The Net Stage 3 ratio improved to 2.50% from 2.70% during the same period.

Rating Outlook and Implications

CRISIL expects the MUFG Bank transaction to significantly benefit Shriram Finance's capitalisation profile, with networth expected to cross ₹1 lakh crore. The rating agency believes this will support the company's growth plans and improve its liability franchise through lower incremental borrowing costs. CRISIL indicated that upon resolution of the Rating Watch, the rating may change by up to one notch, suggesting potential for upgrade.