Shriram Finance has received positive rating actions from both ICRA Limited and CRISIL Ratings Limited following board approval for a major fundraising transaction with MUFG Bank Ltd. The company announced preferential issue of equity shares worth ₹39,617.98 crores, prompting both rating agencies to place their ratings on Watch with Positive Implications.

ICRA Rating Action

ICRA Limited has placed Shriram Finance's credit ratings on Watch with Positive Implications following the board's approval of the MUFG Bank investment. The rating action affects both the Fixed Deposit Programme and Non-Convertible Debenture Programme.

CRISIL Rating Update

CRISIL Ratings Limited has placed its rating on the long-term bank facilities and debt instruments on 'Rating Watch with Positive Implications' and reaffirmed its 'Crisil A1+' rating on short-term facilities. The rating action covers extensive debt instruments and facilities.

Transaction Structure and Financial Impact

The preferential issue involves the allotment of 471.12 million fully paid-up equity shares of face value ₹2.00 each to MUFG Bank Ltd. The transaction will result in MUFG holding a 20% stake in Shriram Finance post-equity infusion.

Company Financial Position

As of September 30, 2025, Shriram Finance maintained strong financial metrics with assets under management of ₹2,81,309 crores. Both rating agencies noted the company's comfortable capitalisation and healthy earnings profile.

Conference Call and Regulatory Approvals

Shriram Finance will hold a conference call on December 30, 2025, at 8:00 AM IST to discuss the proposed preferential issue. The transaction is subject to multiple approvals including shareholder consent through special resolution at the EGM scheduled for January 14, 2026, along with clearances from RBI, Competition Commission, and stock exchanges.

Both ICRA and CRISIL stated that their rating watches will be resolved upon conclusion of the MUFG transaction, with completion expected to positively impact the ratings. The agencies highlighted that the proposed equity infusion will significantly strengthen the company's capitalisation profile and support growth plans over the medium term.

Shriram Finance Limited recorded a substantial block trade on the National Stock Exchange (NSE), highlighting significant institutional trading activity in the financial services sector.

Block Trade Details

The transaction involved a considerable volume of shares and represents one of the notable institutional trades in the market. The following table summarizes the key parameters of the block trade:

Market Significance

Block trades typically indicate institutional investor activity and can signal significant portfolio adjustments by large investors, mutual funds, or other institutional entities. The transaction price of ₹860.80 per share provides insight into the valuation at which institutional investors are willing to transact in Shriram Finance shares.

About the Transaction

The block trade represents a substantial monetary value of ₹91.17 crores, making it a noteworthy transaction in the financial services space. Such large-volume trades are often executed through block deal mechanisms to minimize market impact while facilitating significant position changes by institutional investors.

The execution of this block trade demonstrates continued institutional interest in Shriram Finance, reflecting the company's position in the financial services sector and its appeal to large-scale investors.