Overview
- CARE lifted Shriram Finance’s long-term rating to AAA; Stable and retained A1+ on commercial paper, upgrading NCDs and subordinated debt of ₹2,500 crore and reaffirming the ₹7,500 crore CP programme.
- Shares rose about 2.2% to ₹977.70 in the reported session, taking the company’s market value to roughly ₹1.83 lakh crore.
- Management expects the higher rating to reduce the cost of funds by nearly 100 basis points over the next 1.5–2 years from around 8.7%.
- MUFG’s planned 20% stake is valued at about $4.4 billion, which coverage describes as the Japanese bank’s largest investment in India.
- Brokerages strengthened bullish views: Jefferies raised its target to ₹1,145, Nomura to ₹1,200, and CLSA maintained outperform with a ₹1,030 target, citing benefits from lower funding costs and growth prospects.