Shalibhadra Finance Limited has received a credit rating of [ICRA]BBB- (Stable) for its Rs. 20 crore non-convertible debentures from ICRA Limited. The company informed BSE about this development on March 28, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Assignment Details

ICRA Limited has assigned ratings to the company's instruments as follows:

Rating Rationale and Key Strengths

The rating reflects Shalibhadra Finance's operational track record in two-wheeler financing and its established dealer and sub-dealer network. The company has demonstrated comfortable capitalisation levels with a gearing of 0.3x and regulatory capital adequacy ratio (CAR) of 79.0% as of December 31, 2025.

Financial Performance Highlights

The company has maintained healthy profitability with a return on assets (RoA) of 8.9% in FY2025, and notably has not posted a net loss in any quarter over the last 10 years. The loan book grew by 31% year-on-year in FY2025 to Rs. 180 crore as of March 31, 2025, reaching Rs. 212 crore as of December 31, 2025.

Rating Constraints and Challenges

Despite the positive aspects, the rating faces certain constraints. The company operates at a modest scale with a loan book of Rs. 212 crore as of December 31, 2025, and maintains a monoline business model focused entirely on two-wheeler financing. Asset quality remains moderate with 90+ days past due of 4.1% as of December 31, 2025.

Geographic Concentration

The company's operations remain geographically concentrated, though it has been working to improve diversity by expanding to Maharashtra and Madhya Pradesh, which now account for 46% of the total portfolio as of December 31, 2025.

Business Profile and Operations

Shalibhadra Finance, incorporated in 1992 and operational since 1995, is registered with the Reserve Bank of India as a non-banking financial company. The company initially focused on four-wheeler financing but shifted to two-wheeler financing in rural areas due to increasing competition. As of December 31, 2025, the company operated through 58 branches across Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan, with its head office in Mumbai.

Outlook and Rating Sensitivities

The Stable outlook factors in the comfortable capitalisation profile and healthy profitability. ICRA indicated that the rating could be upgraded if the company significantly increases its scale of operations while maintaining asset quality and profitability with funding profile diversification. Conversely, material deterioration in asset quality on a sustained basis could lead to a downgrade.

Shalibhadra Finance Limited has announced that promoter group member Ayushi Minesh Doshi has acquired additional equity shares through a market transaction on BSE. The disclosure was made in compliance with SEBI regulations governing substantial acquisition of shares and takeovers.

Transaction Details

Ayushi Minesh Doshi, identified as a promoter group member, purchased 78,500 equity shares of Shalibhadra Finance Limited on March 27, 2026. The transaction was executed through open market purchase on the Bombay Stock Exchange.

Shareholding Pattern Changes

The acquisition resulted in a notable change in Doshi's shareholding pattern in the company:

Company Capital Structure

The transaction details reveal the company's current capital structure:

Regulatory Compliance

The disclosure was filed pursuant to Regulation 29(2) read with 29(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The comprehensive disclosure was submitted to BSE Limited on March 27, 2026, demonstrating prompt compliance with regulatory requirements.

The formal disclosure letter was addressed to the Corporate Relationship Department of BSE Limited at Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai. The transaction excludes encumbrances, warrants, or convertible securities, with all holdings being direct equity shares carrying voting rights.

Company Information

Shalibhadra Finance Limited's shares are listed on BSE with scrip code 511754. The company maintains its corporate operations from Mumbai, with the promoter group continuing to demonstrate confidence in the company's prospects through this market acquisition.