The management will also be addressing the media later at noon on Monday, December 22.
Shriram Finance's deal with MUFG has now become the largest ever deal in the Indian Financial Services space, taking the total transaction value this year past $11 billion.
38 analysts have coverage on Shriram Finance now, of which 34 have a "buy" rating, three say "hold", while one has a "sell" rating on the stock. ICICI Securities has the highest price target on the stock on the street at ₹1,225, projecting a potential upside of 33% from Friday's close.
Brokerage firm Nomura has maintained its "buy" rating and raised its price target on the stock to ₹1,140.
The brokerage believes that deal will result in a Book Value Per Share accretion of 24%, a dilution in the Return on Equity (RoE) of 3.4 basis points, but its Return on Assets (RoA) can expand up to 3.7%.
It expects a big upswing in Shriram Finance's growth outlook and as a result, it has lifted its Assets Under Management (AUM) growth outlook to 20% from 17% earlier.
Jefferies has also raised its price target on Shriram Finance to ₹1,080, while maintaining its "buy" rating.
The brokerage said that the deal will lift Shriram Finance's tier-1 capital ratio to 30%, increasing the prospects of a credit rating upgrade and boosting the company's competitiveness in the new CVs and MSME segment.
Factoring in the capital raise, Shriram Finance's financial year 2027-2028 estimated Earnings Per Share (EPS) may fall between 6% and 7%, but its book value per share would rise by 25% and 20% respectively over the next two years.
At 1.9 times, financial year 2027 estimated book value, valuations seem reasonable for Jefferies.
CLSA has maintained its "outperform" rating on Shriram Finance and has raised its price target to ₹1,030 from ₹840 earlier.
The brokerage is of the view that the fund raise will strengthen Shriram Finance's balance sheet and lower funding costs significantly.
"While excess capital will temporarily boost NIMs and RoAs and dilute RoE due to lower leverage, expect long-term benefits due to improved profitability and entry into low-risk segments," the brokerage wrote.
Despite the lower leverage, CLSA expects Shriram Finance's RoE to remain in the mid-teens over the next three years. The brokerage has raised its net profit estimates for financial year 2027-2028 by 12% and 25% respectively, although it has kept its EPS estimates unchanged.
Kotak Institutional Equities has maintained its "Add" rating on the stock and raised its target to ₹990 from ₹840 earlier.
It expects the large capital infusion to pose a challenge to lever up and dilute near-term profitability, the improvement in debt market comfort could increase financial flexibility and improve business prospects.
Shares of Shriram Finance ended 4.1% higher on Friday at a record high of ₹905.1. The stock is up 55% so far in 2025.
