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Shriram Finance shares are in focus today after the company’s board approved a large preferential equity issuance to Japan-based MUFG Bank Ltd.

The NBFC stock was trading at Rs 897.45, up 3.25 per cent, at 12:30 pm.

The buzz around the stock is also supported by a broader trend of rising Japanese investments in India’s financial sector.

Earlier this year, Sumitomo Mitsui Banking Corporation (SMBC) acquired a 24.22 per cent stake in Yes Bank, becoming its largest shareholder. Separately, Mizuho Securities announced plans to acquire over 60 per cent stake in Avendus Capital from KKR.

The board has approved raising Rs 39,617.98 crore from MUFG Bank Ltd through the issuance of 47.11 crore fully paid-up equity shares. The shares will be issued for Rs 840.93 per share, including a premium of Rs 838.93, via a preferential issue on a private placement basis. Each share has a face value of Rs 2.

Post allotment, MUFG Bank will hold a 20 per cent stake in Shriram Finance on a fully diluted basis. Before this transaction, MUFG did not hold any equity in the company.

The issue is subject to shareholder approval at an Extraordinary General Meeting scheduled for January 14, 2026, along with regulatory approvals from authorities such as the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).

Shriram Finance Limited operates across credit, insurance, asset management, wealth management, asset reconstruction, stock broking, and distribution businesses. The firm is the second-largest retail NBFC, with assets under management (AUM) exceeding Rs 2.81 trillion.

Shriram Finance operates through 3,225 branches, employs 78,833 people, and serves 96.6 lakh customers.

MUFG Bank is a subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), a Tokyo-headquartered financial group with over 360 years of history, a presence in more than 50 countries, approximately 2,000 locations, and about 150,000 employees. MUFG’s shares are listed on the Tokyo, Nagoya, and New York stock exchanges.

The stock has delivered strong returns across timeframes, 46.7 per cent over one year, 109.8 per cent over two years, and over 320 per cent in five years.

The company’s current market capitalisation stands at approximately Rs 1.62 lakh crore. Shriram Finance is part of the BSE 100 index and operates in the Non-Banking Financial Company (NBFC) segment.