Shriram Finance up 40% in 4 months; Japan's MUFG said to eye stake in NBFC

Shriram Finance said the company is on a growth trajectory and routinely explores opportunities that are aimed at enhancing shareholder value

Shriram Finance share price today

Share price of Shriram Finance hit a new high of ₹876.25, up 1.5 per cent on the BSE on Thursday, ahead of the board meeting for fund raising plan. 

 

In the past two trading days, the stock of a non-banking finance company (NBFC) has gained 3 per cent on reports of Japan's Mitsubishi UFJ Financial Group (MUFG) to invest up to $5 billion in Shriram Finance for a 20 per cent stake.

 

Meanwhile, in the past four months, the stock has rallied 40 per cent. It has zoomed 78 per cent from its 52-week low price of ₹493.60 touched on January 20, 2025.

MUFG to buy 20% stake in Shriram Finance: reports

As per media sources, Mitsubishi UFJ Financial Group (MUFG) is in advanced discussions to invest around $4.5-5 billion for approximately a 20 per cent minority stake in Shriram Finance, with the company’s board scheduled to meet to discuss fundraising structures, including this primary issuance of equity.

 

The board of directors is scheduled to meet on Friday, December 19, 2025, to consider proposals for raising funds through various avenues.

 

As per the said industry standards, where a market rumour is reported during the period between the issuance of a pre-intimation of a board meeting and the conclusion of such board meeting, no confirmation, denial or clarification is required to be issued by the listed entity. Any appropriate disclosure, if required, is to be made after the conclusion of the board meeting, Shriram Finance said in response to the news report.

 

Shriram Finance is on a growth trajectory and routinely explores opportunities which are aimed at enhancing shareholder value. Accordingly, the company has intimated to the stock exchanges on December 16, 2025, with respect to its board meeting scheduled to be held on December 19, 2025, to consider the proposal for raising funds through various avenues, the company said.

 

As a matter of good corporate governance, the company confirms that as of the date, no binding agreement, arrangement or understanding has been executed with any investor, and there are no such arrangements that warrant a disclosure, it added.

InCred Equities' view on vehicle lenders

Disbursements in the September 2025 quarter (Q2FY26) were soft across vehicle financiers because of seasonality and delayed purchases due to the Goods and Services Tax (GST) rate cut, although demand rebounded sharply from October 2025, with the momentum continuing in passenger vehicles and small/light commercial vehicles. 

 

Used-vehicle demand has strengthened as the inventory improved. Shriram Finance is ramping up new vehicle loans, while Mahindra & Mahindra Financial Services (MMFS) is gaining traction in used vehicles with an equal focus on non-vehicle financing by all lenders. 

 

Diversification and deep rural reach to enable healthy asset under management (AUM) growth for Shriram Finance, which will be buoyed by a good monsoon season. However, currently, the stock is trading above the brokerage firm’s target price of ₹870 per share.

 

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