What is the story about?
Shares of Nifty 50 constituent and non-bank lender Shriram Finance Ltd
. will be in focus on Friday, November 19, ahead of its board meet to consider a fund raising proposal
The stock has been in the news owing to reports of a potential large investment from a big foreign institutional investor.
On Thursday, Reuters reported citing sources that Japan's Mitsubishi UFJ Financial Group (MUFG) is set to invest over $4 billion for close to 20% stake in Shriram Finance, which could turn out to be the largest deal of 2025 within the Indian financial space, surpassing the RBL Bank-Emirates NBD deal.
This could also mark another investment from a large Japanese corporation within the Indian Financial Space, after MUFG's Japanese rival Sumitomo Mitsui Financial Group (SMBG) acquired close to 25% stake in Mumbai-based private lender Yes Bank Ltd. worth nearly $2 billion.
India's financial sector has seen deals worth over $7 billion in 2025 so far with deals spanning across the banking and non-banking side. Yes Bank, RBL Bank, Sammaan Capital, Federal Bank, among others, have all seen large financial investments this year, and Shriram Finance is likely to add to that tally.
In an interaction with CNBC-TV18 on November 26, Shriram Finance's Executive Vice Chairman Umesh Revankar had said that the company does not need capital as it has a CRAR of over 20%, but discussions are ongoing and that the company has been talking to various entities.
A major investment here would bring in fresh capital and reduce the cost of funds for Shriram Finance, and also pave the way for credit rating upgrades.
At the current price, shares of Shriram Finance are trading at a financial year 2027 estimated price-to-book value of 2.2 times, compared to its closest peer Cholamandalam, which trades at 4.1 times.
Shares of Shriram Finance ended 0.2% higher on Friday at ₹866. The stock made a 52-week high intraday at ₹876.9 and is up nearly 50% so far in 2025.
The stock has been in the news owing to reports of a potential large investment from a big foreign institutional investor.
On Thursday, Reuters reported citing sources that Japan's Mitsubishi UFJ Financial Group (MUFG) is set to invest over $4 billion for close to 20% stake in Shriram Finance, which could turn out to be the largest deal of 2025 within the Indian financial space, surpassing the RBL Bank-Emirates NBD deal.
This could also mark another investment from a large Japanese corporation within the Indian Financial Space, after MUFG's Japanese rival Sumitomo Mitsui Financial Group (SMBG) acquired close to 25% stake in Mumbai-based private lender Yes Bank Ltd. worth nearly $2 billion.
India's financial sector has seen deals worth over $7 billion in 2025 so far with deals spanning across the banking and non-banking side. Yes Bank, RBL Bank, Sammaan Capital, Federal Bank, among others, have all seen large financial investments this year, and Shriram Finance is likely to add to that tally.
In an interaction with CNBC-TV18 on November 26, Shriram Finance's Executive Vice Chairman Umesh Revankar had said that the company does not need capital as it has a CRAR of over 20%, but discussions are ongoing and that the company has been talking to various entities.
A major investment here would bring in fresh capital and reduce the cost of funds for Shriram Finance, and also pave the way for credit rating upgrades.
At the current price, shares of Shriram Finance are trading at a financial year 2027 estimated price-to-book value of 2.2 times, compared to its closest peer Cholamandalam, which trades at 4.1 times.
Shares of Shriram Finance ended 0.2% higher on Friday at ₹866. The stock made a 52-week high intraday at ₹876.9 and is up nearly 50% so far in 2025.
