CARE raises Shriram Finance’s credit rating to top-tier AAA

Shriram Finance Ltd on Monday said it has received letters from CARE Ratings Limited upgrading the credit ratings assigned to its non-convertible debentures and subordinated debt to “CARE AAA; Stable” from “CARE AA+; Stable”.

In a regulatory filing, the company said CARE has also reaffirmed the “CARE A1+” rating for its commercial paper programme, reflecting the highest short-term credit quality.

The ratings review was undertaken after CARE assessed the company’s operational and financial performance

for FY25 and the first half of FY26, along with its overall credit profile.

Shriram Finance said copies of the rating letters have been submitted to the stock exchanges in compliance with the SEBI Listing Obligations and Disclosure Requirements Regulations. The company added that the intimation will also be uploaded on its official website.

Shares of Shriram Finance Ltd closed at ₹953.50 on the BSE on Monday, down 0.70%.

The ratings upgrade comes after a strong rally in the stock. Shares of Shriram Finance rose about 16% over six sessions to hit a fresh 52-week high of ₹983.70 last Wednesday.

Also Read: Why Parag Thakkar prefers Shriram Finance and Chola among NBFCs and DLF in real estate

Earlier, on December 19, Shriram Finance announced that Japan’s MUFG Bank will acquire a 20% stake in the NBFC through a preferential allotment of equity shares worth ₹39,600 crore ($4.4 billion), marking the largest foreign direct investment in India’s financial sector.

The floor price for the preferential issue has been set at ₹840.83 per share, with MUFG set to acquire 47.11 crore equity shares under the transaction.

Shriram Finance, India’s second-largest non-bank lender after Bajaj Finance, operates across urban and rural markets, with a focus on financing commercial vehicles, tractors and passenger cars.