Shriram Finance Soars 31% on MUFG Deal, Brokerages Raise Targets

• Shriram Finance stock could see up to 31% surge after MUFG's $4.4 billion investment, the largest in Indian financial services.
• Japan's MUFG will acquire a 20% stake in Shriram Finance, nominating two directors, making it an equity method affiliate.
• Brokerages like ICICI Securities (₹1225), Nomura (₹1140), Jefferies (₹1080), CLSA (₹1030), and Kotak (₹990) have raised price targets.
• 34 out of 38 analysts have given a 'Buy' rating, citing increased capital, improved balance sheet, and growth prospects.
• The deal is expected to boost Tier-1 capital, potentially leading to a credit rating upgrade and enhanced competitiveness.

Why It Matters: MUFG's $4.4B investment in Shriram Finance drives stock surge and higher brokerage targets.