MUFG Infuses $4 Billion in Shriram Finance for 20% Stake, Signals Major Re-rating

• Japanese financial major MUFG is set to acquire a 20% stake in Shriram Finance through a $3.5-4 billion fresh capital infusion.
• The deal, expected to be announced on December 19, is priced around Rs 880 per share, valuing Shriram Finance near its $10 billion market cap.
• MUFG will secure at least two board seats and a first right of refusal for future capital raises, potentially increasing its stake to 51%.
• This marks renewed investor interest after Piramal's exit and is set to be the largest financial services deal of 2025.
• Shriram Finance stock has surged 38% in three months and 46% in 2025, significantly outperforming the BSE Sensex.

Why It Matters: MUFG's $4 billion investment for a 20% stake positions Shriram Finance for significant re-rating and growth.