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Listen to this article in summarized format The company proposes to buy back bonds maturing in April 2027 and April 2028 in an attempt to reduce borrowing costs and the buyback will be offered at a slight premium to the existing trading price, people familiar with the details said. The tender offer will be the first such buyback since MUFG purchased the stake earlier this year. Read more: NSE IPO all set to open; co raises Rs 6,746 crore from anchor investors including LIC, Goldman Sachs The company proposes to buy back bonds maturing in April 2027 and April 2028 in an attempt to reduce borrowing costs and the buyback will be offered at a slight premium to the existing trading price, people familiar with the details said. The tender offer will be the first such buyback since MUFG purchased the stake earlier this year. "The 2027 bond has an outstanding of $750 million while the 2028 bond has $500 million outstanding. By restricting the buyback to only $500 million the company wants to ensure that there is enough demand for the buyback," said a person aware of the details. Both these bonds are trading at a price of about $101 and the buyback will likely be priced at $101.25, this person said. The 2027 bond is trading at a yield of 6.25% while the 2028 bond is trading at 6.12% yield. Shriram is aiming to save at least 75 basis points by buying back these bonds as these borrowings can be substituted with cheaper funds, people familiar with the details said. The company did not reply to an email seeking comment till press time. In April, Fitch Ratings upgraded Shriram Finance's long-term foreign and local-currency rating by one notch to 'BBB-' from 'BB+' following the completion of MUFG's agreement to acquire a 20% stake in Shriram Finance. "Shriram Finance's credit profile benefits from a one-notch uplift from its standalone credit profile, reflecting the strategic investment from a stronger long-term shareholder, in line with Fitch's non-bank financial institutions rating criteria," Fitch had said. MUFG purchased a 20% stake in Shriram Finance for ₹39,618 crore. The deal was completed in April 2026. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-17 02:49