Shriram Finance Secures $4.4bn MUFG Bank Investment; ICICI Sec Raises Target to Rs 1225, Recommends BUY

• Shriram Finance (SFL) partners with MUFG Bank, which will invest ~$4.4bn for a 20% stake via a preferential issue.
• On a fully diluted basis, MUFG Bank and Shriram Capital Private will each own ~20%, with MUFG getting two board seats.
• This is SFL's second major corporate event after the CY22 SCUF merger, which accelerated AUM growth to >15% YoY by Sep’25.
• The enhanced capital base from this investment is expected to further accelerate SFL's growth journey.
• ICICI Securities maintains a 'BUY' rating, raising the target price to Rs 1225 (from Rs 920) and revising FY27E BVPS to INR 490.

Why It Matters: Shriram Finance secures major investment from MUFG Bank, boosting growth prospects and leading to a higher target price.