Shriram Finance denies takeover speculation, allots Rs 500 crore in NCDs

Shriram Finance Limited categorically denied an October 1 news article from the Economic Times titled “MUFG Sets Sights on 20% in Shriram Fin for $2.6 B,” stating that such reports are based on rumor and speculation. The company emphasized that any increase in its equity share price on October 1 was purely market-driven, and its management had no control or knowledge of the reasons behind it. This clarification follows a previous denial regarding media inquiries about a potential majority stake sale.

In a separate but related development on the same date, Shriram Finance announced the outcome of its Allotment Committee – NCDs Meeting. The committee approved and allotted senior, secured, rated, listed, redeemable, taxable Non-Convertible Debentures (NCDs) on a private placement basis.

The issue size for these NCDs, under Series SFL PPD 2025-26 Floating Issue, is Rs. 500 crore, comprising 50,000 NCDs with a face value and issue price of Rs. 1,00,000 per NCD. The NCDs have a tenor of 2 years, 11 months, and 28 days, maturing on September 29, 2028, with a floating coupon rate of 3-month Overnight Indexed Swap (OIS) + 200 Bps and an effective yield of 7.64%. The proceeds will augment long-term resources, finance asset classes, and meet working capital requirements.