Shriram Finance hits record high on 20% stake sale to MUFG Bank

Shriram Finance (SFL) rallied 4.14% to Rs 905.20 after the company's board approved raising Rs 39,617.98 crore from MUFG Bank through a preferential allotment at an issue price of Rs 840.93 per share.

The company will issue 47,11,21,055 equity shares, representing 20% stake, to MUFG Bank at Rs 840.93 per share, representing a discount of 3.25% compared with previous close of Rs 869.20 on Thursday, 18 December 2025.

This landmark transaction underscores SFLs status as Indias second largest retail non-banking financial company (NBFC) in India.

The fund infusion will significantly enhance SFLs capital adequacy, strengthen its balance sheet, and provide long-term growth capital. The collaboration is also likely to unlock synergies in technology, innovation, and customer engagement, drive sustainable growth, improve access to low-cost funding, and potentially strengthen SFLs credit profile, while aligning governance and operational practices with global best standards.

 

Umesh Revankar, executive vice chairman, Shriram Finance, said: "This transaction marks a defining moment in our growth journey. MUFG is one of the largest financial institution, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in Indias financial services sector and our role as a leader within it. Together, we aim to strengthen our capabilities, drive economic progress, and create meaningful impact across communities, building a future-ready institution anchored in trust and good governance.

Hironori Kamezawa, Group chief executive officer, Mitsubishi UFJ Financial Group stated, MUFG is proud to enter into this transaction and become a strategic partner of Shriram Finance, one of Indias most respected financial institutions. MUFG and Shriram Finance share a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finances growth and contributing to economic development, communities, and society in India.

Shriram Finance is India's largest retail asset financing non-banking finance company (NBFC). It is the flagship company of the Shriram Group, which has a significant presence in consumer finance, life insurance, general insurance, housing finance, stock broking, and distribution businesses.

The companys consolidated net profit jumped 8.1% to Rs 2,314.17 crore on 17.2% rise in total income to Rs 11,921.33 crore in Q2 Sept 2025 over Q2 Sept 2024.

The counter hit an all-time high at Rs 914.10 in intraday today.

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