Shriram Finance Hits 52-week High of ₹875.45, Board to Discuss Fundraising on December 19

Shriram Finance shares surged to a fresh 52-week high of ₹875.45 apiece during morning trade on December 17. The rally follows the company’s announcement on December 16 that its board will meet on December 19 to consider fundraising options, including rights issue, preferential allotment, or QIP.

Reports also indicate that the board may discuss a potential deal with Japan’s Mitsubishi UFJ Financial Group (MUFG), which is exploring a minority stake purchase in the NBFC. The proposed transaction could rank among the largest non-banking financial services deals of 2025.

Proposed MUFG Stake Acquisition and Valuation

MUFG is planning to acquire a 20% stake in Shriram Finance through a primary issuance of shares according to news reports. The capital infusion is expected to range between $3.5 billion and $4 billion, valuing the company close to its current market capitalisation of about $10 billion.

The deal structure ensures that the transaction will not trigger an open offer, as the stake purchase will be entirely through fresh equity issuance. If finalised, this investment would significantly strengthen Shriram Finance’s capital base and global partnerships.

Fundraising Plans and Strategic Objectives

Shriram Finance’s board will evaluate multiple fundraising routes, including rights issue, preferential allotment, and qualified institutional placement (QIP). These measures aim to bolster the company’s financial flexibility and support growth initiatives in lending and gold financing. The proposed capital raise aligns with the company’s strategy to expand its product portfolio and enhance its market presence. The outcome of the December 19 meeting will be closely monitored by investors and analysts.

Shareholding Pattern and Promoter Details

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

The company’s diversified ownership structure provides scope for strategic investments without breaching regulatory thresholds. The potential MUFG deal would further diversify the shareholder base and introduce a global financial major into the mix.

Shriram Finance Share Price Performance

On December 17, 2025, Shriram Finance share price opened at ₹856.00, compared to the previous close of ₹848.40. During the session, as of 2:18 PM IST, the stock had touched a high of ₹875.45 and a low of ₹855.00, and was trading at ₹862.30, up by 1.58%. The stock recorded a traded volume of 89.28 lakh shares and a traded value of ₹771.54 crore on the NSE. The market capitalisation stood at ₹1,62,222.79 crore.

Over the past 52 weeks, Shriram Finance has hit a high of ₹875.45 and a low of ₹493.35. The stock is currently trading at a P/E ratio of 16.63.

Conclusion

Shriram Finance’s stock hitting ₹875.45 underscores strong investor sentiment ahead of key board decisions on December 19. The proposed MUFG investment of $3.5–4 billion for a 20% stake could reshape the company’s growth trajectory and position it among the most significant NBFC transactions of the year. Alongside fundraising plans, these developments signal a strategic push to strengthen capital and expand operations. Market participants will watch closely for official announcements following the board meeting.

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