Shriram Pistons & Rings Limited has announced the successful issuance and allotment of commercial papers worth ₹10,000 million through private placement. The company informed both the National Stock Exchange of India Limited and BSE Limited about this fundraising initiative under Regulation 30 of the SEBI Listing Regulations.

Commercial Paper Details

The commercial paper issuance carries specific terms and conditions that reflect the company's strategic financing approach. The following table outlines the key parameters of the issuance:

Interest and Yield Structure

The commercial papers offer a coupon rate of 6.37%, providing short-term investment opportunities for institutional investors.

Listing and Administrative Details

Shriram Pistons & Rings Limited has indicated its intention to list these commercial papers on the National Stock Exchange of India Limited. The company has appointed an issuing and paying agent to ensure smooth processing of transactions and timely settlements for investors.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made simultaneously to both major stock exchanges where the company's shares are listed.

Shriram Pistons & Rings Limited has successfully completed the first tranche closing of its Asset Purchase Agreement with Sunbeam Lightweighting Solutions Private Limited, marking a significant milestone in the company's capacity expansion strategy. The company paid ₹10.00 crores in this initial tranche as part of the total ₹28.00 crore transaction announced earlier.

First Tranche Completion Details

The company informed stock exchanges through a regulatory filing that it has completed the first tranche closing under the Asset Purchase Agreement dated December 19, 2025. This completion involved the acquisition of identified plant and machinery and related assets forming part of a piston manufacturing line, executed on a piecemeal basis according to the agreement terms.

Transaction Structure and Progress

The acquisition follows a structured approach with the transaction being completed in two separate tranches, subject to fulfillment of conditions precedent as specified in the Asset Purchase Agreement. The first tranche has been successfully completed upon satisfaction of applicable closing conditions and completion of agreed closing deliveries.

The balance acquisition of assets forming part of the proposed transaction will be completed in subsequent tranches, subject to fulfillment of respective closing conditions and closing deliveries as stipulated under the agreement.

Strategic Business Impact

This asset acquisition aligns with Shriram Pistons & Rings' principal line of business and strengthens the company's existing piston manufacturing operations. The transaction is designed to enhance manufacturing capacity and improve operational efficiencies across production facilities in the automotive ancillary sector.

Regulatory Compliance and Transaction Terms

Shriram Pistons & Rings confirmed that this transaction maintains compliance with all regulatory requirements and does not qualify as a related party transaction. The deal is being undertaken on an arm's length basis, with the company's promoter and promoter group entities having no interest in the seller entity.

The transaction includes customary representations, warranties, indemnities, and non-compete obligations, along with transfer of possession of identified plant and machinery and related records upon completion of each tranche. The company has fulfilled all closing conditions for the first tranche and completed the necessary closing deliveries as per the agreement terms.