Shriram Finance Shares Dip 2% After 6-Day Rally; MUFG Deal Fuels Profit-Booking

• Shriram Finance shares fell 2% on December 26 due to profit-booking after a six-session gaining streak, which saw the stock surge 16% to a 52-week high.
• The recent rally was driven by MUFG Bank's announcement to acquire a 20% stake in Shriram Finance for Rs 39,600 crore ($4.4 billion) via preferential allotment.
• This MUFG deal marks India's largest FDI in the financial sector, with a floor price of Rs 840.83 per share for 47.11 crore equity shares.
• Brokerages view the deal positively, expecting a stronger balance sheet, enhanced growth, and potential credit rating upgrades for Shriram Finance.
• MUFG Bank stated no intention to increase its stake beyond 20% or invest in other Shriram Group entities, while Shriram Finance confirmed it prefers to remain an NBFC.

Why It Matters: Shriram Finance shares saw profit-booking post-MUFG deal, but long-term outlook remains positive.