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.

Shriram Pistons & Rings Limited has received a significant credit rating update from India Ratings and Research (Ind-Ra), a Fitch Group company. The rating agency has placed Shriram Pistons & Rings' long-term issuer rating on Rating Watch with Positive Implications, covering ₹4,889.20 million in bank facilities and a new commercial paper programme.

Rating Actions Overview

India Ratings has taken multiple rating actions on Shriram Pistons & Rings Limited and its debt instruments, with the most notable being the placement of ratings on Rating Watch with Positive Implications. This development suggests potential for future rating upgrades based on the company's improving credit fundamentals.

Commercial Paper Programme Details

The rating agency has assigned an IND A1+ rating to the company's commercial paper programme worth ₹10,000.00 million. The commercial paper has a maturity period of up to 365 days and represents a significant addition to the company's funding options. This rating reflects the company's strong short-term creditworthiness and ability to meet its immediate financial obligations.

Bank Facilities Breakdown

The comprehensive rating covers an extensive network of banking relationships across multiple leading financial institutions. The facilities are distributed among various banks including State Bank of India, HDFC Bank Limited, Axis Bank Limited, IDBI Bank, Citibank N.A., HSBC, DBS Bank India Limited, and ICICI Bank.

Fund-Based Working Capital Facilities:

• State Bank of India: ₹550.00 million
• HDFC Bank Limited: ₹170.00 million and ₹1,259.20 million (term loan)
• Axis Bank Limited: ₹203.00 million
• IDBI Bank: ₹300.00 million
• Citibank N.A.: ₹296.00 million and ₹330.00 million (term loan)
• HSBC: ₹131.00 million and ₹220.00 million (term loan)
• DBS Bank India Limited: ₹50.00 million
• ICICI Bank: ₹300.00 million

Non-Fund Based Working Capital Facilities:

• State Bank of India: ₹50.00 million
• HDFC Bank Limited: ₹430.00 million
• Axis Bank Limited: ₹330.00 million
• IDBI Bank: ₹300.00 million
• Citibank N.A.: ₹324.50 million
• HSBC: ₹115.50 million
• DBS Bank India Limited: ₹200.00 million
• ICICI Bank: ₹250.00 million

Regulatory Compliance and Disclosure

The rating intimation has been made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled its regulatory obligations by informing both the National Stock Exchange of India Limited and BSE Limited about these rating developments.

The rating letters and related documentation have been made available on the company's website at www.shrirampistons.com , ensuring transparency and accessibility for all stakeholders.