Shriram Finance Shares Soar After MUFG's ₹39,620 Cr Investment Deal

• MUFG will invest ₹39,620 crore to acquire up to a 20% stake in Shriram Finance, leading to a sharp surge in shares.
• Shares were issued to MUFG at ₹840.9, a low 3% discount compared to Thursday's closing, significantly less than other recent deals.
• The deal values Shriram Finance at 1.9 times its one-year forward estimated price-to-book value, lower than peer Cholamandalam (4x book).
• Capital infusion offers opportunities with MUFG's consumer network, reduces credit costs, and increases the chance of a credit rating upgrade.
• Expert N Jayakumar notes the deal boosts Shriram Finance's net worth to ₹90-92,000 crore, making it highly capitalized.

Why It Matters: MUFG's significant investment fuels Shriram Finance's growth, boosting shares and market position.