Shriram Finance refutes report on 20% stake sale to MUFG; Morgan Stanley retains target
This is a rumour or speculation, Shriram Finance informed NSE and BSE, while categorically denying any knowledge about information of such stake sale to any party.
- Oct 1, 2025,
- Updated Oct 1, 2025 9:05 AM IST
Shares of Shriram Finance Ltd are in focus on Wednesday morning after the NBFC denied a media report suggesting potential majority stake sale of the company to Mitsubishi UFG Financial Group. An Economic Times report earlier suggested that the Japanese group was looking to acquire 20 per cent stake in Shriram Finance for Rs 23,000 crore or $2.6 billion. This would have made it the largest FDI in an Indian NBFC.
This is a rumour or speculation, Shriram Finance informed NSE and BSE, while categorically denying any knowledge about information of such stake sale to any party.
"With a view to prevent any misinformation and ensure full transparency, we hereby in good faith wish to clarify that the Company is not aware of any such potential majority stake sale of equity shares of the Company by any shareholder(s) and no such shareholder(s) has approached the Company or expressed his/their intention to sell any shares held by him/them in the company," it said.
ET had earlier suggested that the investment by MUFG will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares. Quoting sources, it further suggested that the Japanese bank was not averse to taking a higher stake in the NBFC, even a controlling interest, over time, the people said. In such an eventuality, it would have to launch an open offer, it said adding that the transaction is likely at current price levels.
The Shriram Finance promoters held 25.39 per cent stake in Shriram Finance. The group's holding company Shriram Capital held 17.85 per cent stake, while the rest is owned by the public and institutional shareholders, including the government of Singapore (5.41 per cent) and Monetary Authority of Singapore (1.2 per cent).
Morgan Stanley reportedly maintained its target price of Rs 785 on Shriram Finance while retaining its 'overweight' stance on the stock. Shriram Finance's June quarter asset quality came in better than feared, but macro sentiment remains a drag on performance, ET NOW reported the brokerage as saying. Morgan Stanley has revised its earnings per share forecast for Shriram Finance 5-6 per cent below the consensus for FY26-28. It expects EPS to grow 15 per cent compounded annually for FY25-27. It anticipated FY27's tangible return on equity at 16.5 per cent. The stock is valued at 10.7 times FY27 EPS and 1.6 times tangible price to book value.
Shares of Shriram Finance Ltd are in focus on Wednesday morning after the NBFC denied a media report suggesting potential majority stake sale of the company to Mitsubishi UFG Financial Group. An Economic Times report earlier suggested that the Japanese group was looking to acquire 20 per cent stake in Shriram Finance for Rs 23,000 crore or $2.6 billion. This would have made it the largest FDI in an Indian NBFC.
This is a rumour or speculation, Shriram Finance informed NSE and BSE, while categorically denying any knowledge about information of such stake sale to any party.
"With a view to prevent any misinformation and ensure full transparency, we hereby in good faith wish to clarify that the Company is not aware of any such potential majority stake sale of equity shares of the Company by any shareholder(s) and no such shareholder(s) has approached the Company or expressed his/their intention to sell any shares held by him/them in the company," it said.
ET had earlier suggested that the investment by MUFG will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares. Quoting sources, it further suggested that the Japanese bank was not averse to taking a higher stake in the NBFC, even a controlling interest, over time, the people said. In such an eventuality, it would have to launch an open offer, it said adding that the transaction is likely at current price levels.
The Shriram Finance promoters held 25.39 per cent stake in Shriram Finance. The group's holding company Shriram Capital held 17.85 per cent stake, while the rest is owned by the public and institutional shareholders, including the government of Singapore (5.41 per cent) and Monetary Authority of Singapore (1.2 per cent).
Morgan Stanley reportedly maintained its target price of Rs 785 on Shriram Finance while retaining its 'overweight' stance on the stock. Shriram Finance's June quarter asset quality came in better than feared, but macro sentiment remains a drag on performance, ET NOW reported the brokerage as saying. Morgan Stanley has revised its earnings per share forecast for Shriram Finance 5-6 per cent below the consensus for FY26-28. It expects EPS to grow 15 per cent compounded annually for FY25-27. It anticipated FY27's tangible return on equity at 16.5 per cent. The stock is valued at 10.7 times FY27 EPS and 1.6 times tangible price to book value.