Shriram Finance Shares Jump 2% on Report of MUFG's $3.2 Billion Investment Talks

Shares of Shriram Finance saw a rise of approximately 2 percent today, December 15, following a report indicating that Mitsubishi UFJ Financial Group (MUFG) of Japan is in advanced negotiations to purchase a minority stake in the company.

At 2:45 pm, the company's shares were trading at Rs 863.50. Earlier in the session, the stock had climbed nearly 2.7 percent, reaching a high for the day of Rs 870.60 per share.

The report, citing unnamed sources, stated that MUFG, headquartered in Tokyo, intends to invest 500 billion yen (equivalent to $3.2 billion or over Rs 29,200 crore) to acquire a stake of approximately 20 percent. These sources also indicated that discussions are in the final stages, with an agreement potentially reached this week.

Moneycontrol was unable to independently confirm the report's accuracy.

As of September 30, promoters and promoter groups held 25.39 percent of Shriram Finance, while the remaining 74.61 percent was held by the public. Shriram Capital was the largest promoter, possessing a 17.85 percent stake at the end of September, followed by Shriram Value Services with 7.11 percent.

Over the past five days, Shriram Finance shares have increased by more than 4 percent, and over the past month, they have risen by more than 5 percent. The stock has gained over 27 percent in the last six months. So far in 2023, it is up by more than 47 percent. The company's P/E ratio is around 17.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before making any investment decisions.