Nomura has reaffirmed its positive stance on Shriram Finance by maintaining its Buy rating while simultaneously raising the target price to ₹1,140. This upward revision reflects the brokerage's optimistic outlook on the financial services company's performance and growth prospects.

Brokerage Recommendation Details

The research house's decision to increase the target price demonstrates confidence in Shriram Finance's business fundamentals and market position. The Buy rating continuation suggests that Nomura views the stock as an attractive investment opportunity at current levels.

Market Implications

The target price revision by Nomura adds to the positive sentiment surrounding Shriram Finance in the financial services sector. Such recommendations from established research houses often influence investor sentiment and can impact trading patterns in the stock.

The brokerage's maintained Buy rating, coupled with the enhanced target price, indicates that Nomura expects the stock to deliver returns from its current trading levels. This assessment forms part of the broader analyst coverage that helps investors make informed decisions about their portfolio allocations in the financial services space.

Shriram Finance has received board approval for a major fundraising transaction with MUFG Bank Ltd., involving the preferential issue of equity shares worth ₹39,617.98 crores. The board meeting held on December 19, 2025, approved the strategic investment that will give MUFG a 20% stake in the financial services company. The company has now scheduled a conference call to discuss the proposed transaction with stakeholders.

Conference Call Details

Shriram Finance will hold a conference call on December 30, 2025, at 8:00 AM IST to discuss the proposed preferential issue on private placement basis to MUFG Bank Ltd. The call will be led by senior management including Executive Vice Chairman Umesh G Revankar, Managing Director & CEO Parag Sharma, Joint Managing Director & CFO S. Sunder, and Executive Director Sanjay K. Mundra.

Board Meeting Outcomes

The board of directors approved several key resolutions during their meeting, which commenced at 10:00 AM and concluded at 11:55 AM:

Transaction Structure

The preferential issue involves the allotment of 471.12 million fully paid-up equity shares of face value ₹2.00 each to MUFG Bank Ltd. The floor price was determined in accordance with SEBI ICDR Regulations, with the relevant date set as December 15, 2025.

Special Rights and Governance

The board approved granting specific minority protection rights to MUFG, subject to shareholder approval:

Additionally, MUFG will receive pre-emptive rights to maintain pro-rata shareholding and may second up to 6 personnel to the company over time. These rights will cease if MUFG's shareholding falls below 10% on a fully diluted basis.

Regulatory Approvals and Timeline

The transaction is subject to multiple approvals including shareholder consent through special resolution at the EGM scheduled for January 14, 2026, at 11:00 AM. Other required clearances include approvals from RBI, Competition Commission, and in-principle approvals from stock exchanges. MUFG will also pay a one-time non-compete and non-solicit fee of USD 200.00 million to Shriram Ownership Trust, subject to public shareholder approval.