Shriram Finance raises ₹2,000 crore via NCDs at 7.80%, 8%
Shriram Finance allotted ₹2,000 crore worth of NCDs on July 09, 2026, via private placement. The issuance includes two series with coupon rates of 7.80% and 8%, maturing in 2029 and 2031 respectively. Proceeds will augment long-term resources for lending and debt refinancing.
*this image is generated using AI for illustrative purposes only.
Shriram Finance has allotted Non-Convertible Debentures (NCDs) worth ₹2,000 crore on July 09, 2026, to strengthen its long-term resources. The Allotment Committee approved the issuance of two series of secured, rated, and redeemable NCDs on a private placement basis. The debt instruments carry coupon rates of 7.80% and 8% per annum, with tenors extending up to December 2031.
Breakdown of NCD Allotment
The company issued 1,00,000 NCDs under Option 1 and 10,000 NCDs under Option 2. Both series are listed on the WDM segment of BSE and are secured against the company's assets. The proceeds will be utilized for financing asset classes, onward lending, refinancing existing debt, and meeting working capital requirements in compliance with statutory and regulatory norms.
Key Financial Details
| Parameter | Option 1 | Option 2 |
|---|---|---|
| Series Name | SFL PPD 2026-27 SEP 2029 | STFCL PP 2021-22 K-05 Further Issue 1 |
| Allotment Size | 1,00,000 NCDs | 10,000 NCDs |
| Issue Size (Face Value) | ₹1,000 Crores | ₹1,000 Crores |
| Coupon Rate | 7.80% p.a. | 8% p.a. |
| Maturity Date | September 07, 2029 | December 26, 2031 |
| Face Value per NCD | ₹1,00,000 | ₹10,00,000 |
| Yield | 7.80% | 7.90% |
Interest Payment Schedule
For Option 1, interest payments are scheduled annually on September 07, 2026, 2027, 2028, and upon maturity on September 07, 2029. Option 2 features annual interest payments on December 28 from 2026 to 2030, with the final payment due on maturity on December 26, 2031. The effective yield for Option 2 is 7.90%, reflecting a premium issue price of ₹3,370 per debenture.
Security and Utilization
Both NCD options are secured, and there is no record of delay or default in interest or principal payments. The issuance follows the board meeting held on April 24, 2026, which authorized the fund-raising exercise. The company confirmed that 100% of the proceeds will be utilized in accordance with RBI requirements and other statutory guidelines.
Historical Stock Returns for Shriram Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.71% | -1.56% | +15.06% | +3.91% | +54.23% | +260.34% |
How will the infusion of ₹2,000 crore impact Shriram Finance's capital adequacy ratio and future lending capacity?
What is the outlook for Shriram Finance's borrowing costs given the current coupon rates of 7.80% and 8%?
Will this issuance lead to a shift in the company's asset-liability mix, and how might it affect its interest rate risk profile?
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