Shriram Finance shares hit 52-week high as Japan's MUFG Bank to acquire 20% stake; all details from board meeting

The NBFC said that the funds will be raised through a preferential allotment of equity shares, which will result in MUFG Bank acquiring a 20% stake in the company on a fully diluted basis.

However, the proposed minority investment by MUFG Bank is subject to shareholder approval, regulatory clearances and customary closing conditions.

Shriram Finance board proposes to issue fully paid-up equity shares with a face value of ₹2 each through a preferential issue on a private placement basis.

A total of 47.11 crore equity shares will be issued at a price of ₹840.93 per share, aggregating to ₹39,617.98 crore. The shares will be subscribed in cash, with the investor paying the full amount at the time of allotment. Post-issue, these shares will represent a 20% stake in the company’s fully diluted share capital.

Shriram Finance said the transaction highlights its position as India’s second-largest retail NBFC by assets under management and marks a significant milestone for the domestic financial services sector.

Commenting on the development, 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 institutions, 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 India’s financial services sector and our role as a leader within it.”

Revankar said the partnership aims to strengthen capabilities, drive economic progress, and create a meaningful impact across communities, while building a future-ready institution rooted in trust and strong governance.

About MUFG Bank

Japan-based MUFG Bank has a global network spanning around 50 countries. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG Bank’s parent is Mitsubishi UFJ Financial Group, Inc. (MUFG).

Shriram Finance share price

At 12:50 PM, the stock was trading at ₹897.55 apiece on the National Stock Exchange, gaining 2.96%.

Over a month’s time, Shriram Finance shares have gained more than 5%, while the stock has zoomed over 32% in 6 months. Since the beginning of 2025, the stock has rallied over 47%.

The company has a total market capitalisation of ₹1.62 lakh crore, according to data on the NSE.

Shriram Finance Q2 earnings

The flagship company of diversified conglomerate Shriram Group had reported a 7% increase in consolidated net profit at ₹2,314 crore in the second quarter of the current fiscal year. The firm had earned a consolidated net profit of ₹2,153 crore in the second quarter of the previous fiscal year.

The total income of Shriram Finance rose to ₹11,921 crore in the quarter under review, from ₹10,097 crore in the same period a year ago. The NBFC firm earned an interest income of ₹11,551 crore in the quarter as against ₹9,815 crore in the same period a year ago.

Its total expenses also moved up to ₹8,808 crore, as compared to ₹7,345 crore in the same period in the previous fiscal year. The company's asset quality improved, with gross Non-Performing Assets (NPAs) declining to 4.57% of gross advances as of September 30, 2025, from 5.32% by the end of the second quarter of the previous fiscal year.