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 entered into an asset purchase agreement with Sunbeam Lightweighting Solutions Private Limited to acquire piston manufacturing assets for ₹28.00 crores. This strategic move aims to enhance the company's production capacity and strengthen its position in the automotive ancillary sector.

Asset Purchase Agreement Details

The company disclosed this development through a regulatory filing, in compliance with SEBI listing regulations. The transaction involves acquiring identified plant and machinery assets along with related books and records forming part of a piston manufacturing line from Sunbeam Lightweighting Solutions, a wholly-owned subsidiary of Craftsman Automation Limited.

Strategic Objectives and Business Impact

The acquisition aligns with Shriram Pistons & Rings' principal line of business and aims to strengthen the company's existing piston manufacturing operations. The management expects this strategic move to enhance manufacturing capacity and improve operational efficiencies across their production facilities.

The proposed transaction is designed to expand the company's manufacturing capabilities in the automotive ancillary sector, specifically targeting increased piston production capacity to meet growing market demand.

Transaction Structure and Terms

The deal is structured as a piecemeal asset purchase to be completed in two separate tranches, subject to fulfillment of conditions precedent as specified in the agreement. The transaction includes several standard commercial terms:

• Transfer of possession of identified plant and machinery upon completion of each tranche
• Customary conditions precedent and representations
• Standard warranties and indemnities
• Non-compete obligations as per industry practice
• Related books and records transfer

Regulatory and Financial Aspects

Shriram Pistons & Rings confirmed that this transaction does not qualify as a related party transaction and is being undertaken on an arm's length basis. The company's promoter and promoter group entities have no interest in the seller entity, ensuring complete independence in the deal structure.

The total consideration of ₹28.00 crores will be discharged through cash payments in accordance with the terms specified in the Asset Purchase Agreement. The consummation of this proposed transaction remains subject to the fulfillment of closing conditions and completion of closing deliveries as stipulated under the agreement.