Shriram Finance Shares Soar as CARE Upgrades Debt Rating Post-MUFG Deal

• Shriram Finance shares gained 2% after CARE Ratings upgraded its debt rating following the MUFG deal announcement.
• CARE upgraded non-convertible debentures and subordinate debt to "CARE AAA; Stable" from "CARE AA+; Stable".
• The upgrade considers strong operational and financial performance during FY25 and the first half of FY26.
• Management expects the rating upgrade to significantly lower the company's cost of funds by nearly 100 basis points.
• Japan's MUFG will acquire a 20% stake in Shriram Finance for $4.4 billion, with a potential to increase it above 50%.

Why It Matters: Shriram Finance's debt rating upgrade by CARE, fueled by the MUFG deal, is set to reduce its cost of funds.