Shriram Finance shares soar on CARE Ratings upgrade, check details
Shares of Shriram Finance rose after CARE Ratings upgraded the company’s debt rating to 'CARE AAA; Stable' following MUFG’s announcement to acquire a 20% stake for $4.4 billion.
- Dec 30, 2025,
- Updated Dec 30, 2025 11:35 AM IST
Shares of Shriram Finance rose over 2% in Tuesday's session as CARE Ratings upgraded its non-convertible debentures and subordinate debt worth ₹2,500 crore to 'CARE AAA; Stable' from 'CARE AA+; Stable'. The rating agency also reaffirmed the top short term rating of 'CARE A1+' on the company's commercial paper programme aggregating ₹7,500 crore.
The upgrade comes close on the heels of Japan's MUFG announcing a major investment, with a commitment to acquire a 20% stake in Shriram Finance for $4.4 billion, marking MUFG's largest investment in India to date.
Shriram Finance shares gained 2.20% to Rs 977.70 in the current session. Market cap of the firm stood at Rs 1.83 lakh crore.
The management has indicated that the rating upgrade is expected to drive a meaningful decline in the company’s cost of funds, currently calculated at 8.7%. According to company officials, Shriram Finance expects its cost of funds to fall by nearly 100 basis points over the next 1.5 to 2 years.
In the broader market context, Shriram Finance’s rating upgrade and equity infusion from MUFG set it apart from its peers in the non-bank finance sector, offering a strong endorsement of its operational and financial performance. The company’s leadership noted that the improved rating and reduced funding costs are expected to enhance its competitiveness.
Shares of Shriram Finance rose over 2% in Tuesday's session as CARE Ratings upgraded its non-convertible debentures and subordinate debt worth ₹2,500 crore to 'CARE AAA; Stable' from 'CARE AA+; Stable'. The rating agency also reaffirmed the top short term rating of 'CARE A1+' on the company's commercial paper programme aggregating ₹7,500 crore.
The upgrade comes close on the heels of Japan's MUFG announcing a major investment, with a commitment to acquire a 20% stake in Shriram Finance for $4.4 billion, marking MUFG's largest investment in India to date.
Shriram Finance shares gained 2.20% to Rs 977.70 in the current session. Market cap of the firm stood at Rs 1.83 lakh crore.
The management has indicated that the rating upgrade is expected to drive a meaningful decline in the company’s cost of funds, currently calculated at 8.7%. According to company officials, Shriram Finance expects its cost of funds to fall by nearly 100 basis points over the next 1.5 to 2 years.
In the broader market context, Shriram Finance’s rating upgrade and equity infusion from MUFG set it apart from its peers in the non-bank finance sector, offering a strong endorsement of its operational and financial performance. The company’s leadership noted that the improved rating and reduced funding costs are expected to enhance its competitiveness.