Shriram Finance is in focus today. The company’s board is scheduled to meet today to consider proposals for raising funds through various avenues. According to a report by Reuters, MUFG is set to invest more than $4 billion acquiring around 20% stake in Shriram Finance. Reuters also reported that the deal is expected to be closed on Friday.
Shriram Finance says no binding agreement with any investor yet
Shriram Finance on Thursday, December 18, in a BSE release said it will not deny or clarify the report before the board meeting. However, it noted, “As on date, no binding agreement, arrangement or understanding has been executed with any investor.”
“The company is on a growth trajectory and routinely explores opportunities aimed at enhancing shareholder value,” it added.
Japanese banks step up India expansion
The proposed investment, as reported by Reuters, is seen as part of a broader overseas expansion push by Japanese banks. Most big banks in Japan are seeking higher growth opportunities amid slowing growth and an ageing population in Japan.
Earlier this year, another Japanese financial services firm, Sumitomo Mitsui Banking Corporation (SMBC), picked up a 24.22% stake in Yes Bank. SMBC became the biggest single stakeholder in the bank, followed by the State Bank of India.
Japanese investment bank Mizuho Securities on Wednesday announced a plan to acquire over 60% stake in Avendus Capital from US-based investment firm KKR.
With this, Mizuho Securities, an arm of Mizuho Financial Group, aims to further strengthen its business foundation in India’s rapidly developing and maturing capital markets.
Shriram Finance Q2
The NBFC firm Shriram Finance, in its Q2FY26 results, reported a 7% increase in consolidated net profit at Rs 2,314 crore. Total income rose to Rs 11,921 crore, while interest income stood at Rs 11,551 crore.
The company’s asset quality improved, with gross non-performing assets (NPAs) declining to 4.57% of gross advances as of September 30, 2025. Net NPAs moderated to 2.49% of advances.
Shriram Finance share price
The share price of Shriram Finance has increased 47.57% so far this year.
