Shriram Finance shares up 6% as MUFG looks to buy 20% stake

Shares of Shriram Finance j umped over 6% in intraday trade on Monday, extending their gaining streak for the second straight session, driven by strong volumes amid reports that Japanese major Mitsubishi UFJ Financial Group (MUFG) is looking to buy a stake in the non-banking financial company (NBFC).

Cheering the news, Shriram Finance shares rose as much as 6.3% to hit a new all-time high of ₹796 on the BSE, with 6.25 lakh shares changing hands compared to the two-week average volume of 2.90 lakh shares. The market capitalisation surged to ₹1.49 lakh crore.

Shares of Shriram Finance have gained over 23%% in the past month, outperforming the BSE Sensex, which rose 3.4% during the same period. The stock has witnessed stellar growth in the calendar year 2025, rebounding 61% from their 52-week low of ₹493.60 touched on January 20, 2025. The large-cap stock has risen 27% in the past six months and 26% over the last one year.

The report suggests that MUFG is in advanced discussions to acquire up to 20% stake in Shriram Finance through a fresh capital infusion of ₹33,000–35,000 crore. The deal, expected to be priced in the range of ₹760–₹780 per share, could eventually enable the Japanese lender to increase its stake to as much as 51% over time, as per Moneycontrol report.

If the deal successfully concludes, it would mark a significant development for the Chennai-based NBFC, following Piramal Enterprises’ exit in 2023. The Ajay Piramal-led NBFC sold its 8.34% stake, which amounted to over 3.12 crore shares, for approximately ₹4,824 crore through block deals on June 21, 2023. 

Meanwhile, Shriram Finance is preparing for a leadership transition, with Parag Sharma, currently MD and CFO, expected to take over from long-time chief YS Chakravarthi, who will retire next month.

For the September quarter of the current fiscal, Shriram Finance reported a 11.6% year-on-year growth in its consolidated net profit at ₹2,315 crore. The company’s net interest income (NII) rose 10% YoY to ₹6,026 crore, while pre-provision operating profit (PPOP) stood at ₹4,446 crore. The net interest margin (NIM) remained steady at 8.19%.

The board of the company also announced an interim dividend of ₹4.80 per share for FY26, with the payout expected by November 30. Additionally, the board approved plans for fundraising through debentures and bonds, either via private placement or public issuance, between November 2025 and January 2026. The company also passed a postal ballot to renew its borrowing limit of up to ₹35,000 crore.

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