Shriram Finance , a leading non-banking financial company (NBFC) in India, is reportedly in advanced discussions with Mitsubishi UFJ Financial Group (MUFG), one of Japan's largest banking groups, regarding a potential acquisition of a 20% ownership stake. This potential deal could mark a significant move in the Indian financial services sector.

Key Points of the Potential Deal

• Stake Size: MUFG is reportedly looking to acquire a 20% ownership stake in Shriram Finance.
• Status: The talks are currently in progress, with both financial entities engaged in ongoing discussions.
• Implications: This move could potentially strengthen MUFG's presence in the Indian market and provide Shriram Finance with access to global expertise and capital.

About Shriram Finance

Shriram Finance, formerly known as Shriram Transport Finance Company, is a prominent NBFC in India. The company has a strong presence in vehicle financing and small business loans.

Recent Corporate Actions

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, Shriram Finance has recently undertaken several corporate actions:

1. Board Meeting: The company held a board meeting to discuss and approve various resolutions through postal ballot.

2. Key Appointments:

   • Mr. Jugal Kishor Mohapatra (DIN 03190289) is being considered for re-appointment as an Independent Director for a second term.
   • Mr. Parag Sharma (DIN 02916744) is proposed for re-appointment as the Managing Director and CEO effective December 5, 2025.
   • Mr. Sundar Subramanian (DIN 08189901) is being considered for appointment as a Director and subsequently as a Whole-time Director with remuneration.

3. Debt Securities: The company is seeking to refresh the limit for issuing debt securities on a private placement basis.

Potential Impact

If the deal between MUFG and Shriram Finance materializes, it could have several implications:

1. Global Expertise: Shriram Finance could benefit from MUFG's global banking experience and expertise.
2. Capital Infusion: The deal might lead to a significant capital infusion into Shriram Finance, potentially strengthening its financial position.
3. Market Expansion: For MUFG, this could represent a strategic move to expand its footprint in the growing Indian financial services market.

As discussions are ongoing, both companies have not made any official statements regarding the potential deal. Investors and market watchers will be keenly observing the developments in this potential strategic partnership between a major Japanese financial group and one of India's leading NBFCs.

Note: This article is based on the latest available information. The potential deal is still in the discussion phase, and the final outcome may vary.

Shriram Finance Ltd (SFL) saw its shares jump 6% to Rs 794.70 following the announcement of its robust second-quarter results for the fiscal year 2023-24. The non-banking financial company (NBFC) reported a 7% year-on-year increase in consolidated net profit, along with improvements in key financial metrics and asset quality.

Financial Performance Highlights

SFL's financial results for Q2 FY24 showcased significant growth across various parameters:

Improved Asset Quality

The company's asset quality showed notable improvement:

• Gross Non-Performing Assets (NPAs) declined to 4.57% from 5.32%
• Net NPAs reduced to 2.49% from 2.64%

Broker Ratings and Target Prices

Following the results, several brokerages maintained positive ratings on Shriram Finance:

Other Key Points

• Credit costs remained steady at 1.95% of AUM
• The company's strong performance and positive broker outlook contributed to the stock's significant price movement

Shriram Finance's robust Q2 results, coupled with improved asset quality and positive broker ratings, have reinforced investor confidence in the company's growth trajectory and financial stability.