Shriram Finance Eyes Fresh Capital Infusion via NCDs This Quarter

Shriram Finance Ltd has announced its intent to raise funds through the issuance of Non-Convertible Debentures (NCDs) during the period from August 1 to October 31, 2025. The move aligns with the company’s strategy to strengthen its lending capacity and optimize its debt profile amid rising demand for retail and commercial financing.

Fundraising Framework

- The proposed NCDs will be issued on a private placement basis, with a likely face value of Rs 1 lakh per unit  
- The company is considering a base issue size of Rs 1,000 crore, coupled with a greenshoe option of Rs 500 crore  
- These instruments are expected to be senior, secured, rated, redeemable, and taxable, offering a fixed coupon rate of 9.10 percent per annum  

Utilization and Impact

- Proceeds will be deployed toward expanding the asset book, financing vehicles, and refinancing existing debt  
- The funds will also support growth in segments such as gold loans, home loans, and small business lending  
- Interest payments are scheduled annually, with maturity set for September 11, 2034  


Sources: NDTV Profit, Business Standard, Shriram Finance Ltd. Exchange Filings, Moneycontrol.