Shriram Finance Limited has announced the successful allotment of senior, secured, rated, and redeemable Non-Convertible Debentures (NCDs) on a private placement basis. The company successfully raised ₹100 crore through this issuance. These funds are designated for augmenting the company’s long-term resources, supporting its diverse asset classes, facilitating onward lending, and refinancing existing debt to meet general corporate requirements.
Key Issuance Details
The Allotment Committee of Shriram Finance met on May 5, 2026, to finalize the issuance of these debt securities. The NCDs carry a fixed coupon rate of 9.15% p.a., with interest payments scheduled on an annual basis. The final payment of principal and interest is slated for the maturity date of January 19, 2029.
Structuring and Security
The issuance, categorized under Series PPD XVIII 23-24 (further issue 3), consists of 10,000 NCDs at a face value of ₹1,00,000 each. The instrument is secured, ensuring a charge over company assets, and has been priced to reflect market conditions with a premium. The debentures are proposed to be listed on the WDM segment of the BSE, offering transparency and liquidity to investors.
Utilization of Proceeds
The capital raised will be instrumental in supporting the company’s growth strategy. 100% of the net proceeds will be utilized to strengthen the company’s long-term financial resources. This includes financing various asset classes, fulfilling working capital requirements, and executing ongoing debt refinancing plans, in full compliance with all relevant statutory and regulatory guidelines.
Source: BSE
