MUFG Bank's Rs 39,620 crore preferential investment could lift Shriram Finance's capital ratios, support faster AUM growth and a rating upgrade, though RoE may dilute near term
Shriram Finance shares rose to a record high after brokerages said MUFG Bank's proposed investment would sharply lift net worth, capital adequacy and support faster growth
According to Emkay, the deal has the potential to "alter Shriram Finance's growth and profitability trajectory" in several ways
Japan-based Mitsubishi UFJ Financial Group will invest nearly Rs 39,618 crore to acquire a 20 per cent stake in Shriram Finance through a preferential share issue
Shriram Finance said its board has approved entering into definitive agreements with MUFG Bank Ltd for an investment of ₹39,618 crore, or about $4.4 billion
Shriram Finance said the company is on a growth trajectory and routinely explores opportunities that are aimed at enhancing shareholder value
At 9:35 AM, Shriram Finance share price was trading at ₹868, up 2.33 per cent. In comparison, BSE Sensex was trading 0.19 per cent higher at 84,843.85 levels.
Vehicle financiers gain double digits in FY26 as AUM, NIMs and auto loan demand rise. Analysts turn positive on Shriram Finance, M&M Finance, Cholamandalam Investment, and Bajaj Finance
At 10:25 AM; Nifty Realty and Nifty PSU Bank index were up 1 per cent each, while, Nifty Auto, Nifty Bank and Nifty Financial Services index up in the range of 0.30 per cent to 0.60 per cent.
On the daily chart, Nifty formed a bearish candle and continues to maintain a sequence of lower highs and lower lows for the fourth straight session indicating sustained pressure
In the past two months, the stock price of the non-banking finance company (NBFC) has surged 34 per cent after it reported a steady performance in the September 2025 quarter (Q2FY26)
Shriram Finance delivered a better-than-expected Q2FY26, with stronger margins, stable credit costs, and improving vehicle and MSME trends, supporting a confident outlook for the rest of the year
According to the analysts, disbursement growth remained soft across most lenders in Q2FY26 due to seasonality and increased caution in SME/MSME segments.