Shriram Finance shares rise 2% on CARE Ratings upgrade after MUFG deal; stock jumps 67% in 2025 so far

Shriram Finance share price

• Shriram Finance shares rose as CARE Ratings upgraded its debt rating to 'CARE AAA'.
• MUFG Bank to acquire 20% stake in Shriram Finance for Rs 39,600 crore

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The shares of Shriram Finance jumped around 2 percent on December 30 after credit rating agency CARE Ratings upgraded the company's debt rating.

The shares of the company rose to Rs 977.95 apiece on Tuesday, snapping a two-session losing streak.

Shriram Finance gets a credit rating upgrade:

CARE Ratings has upgraded its rating on the company’s non-convertible debentures worth Rs 2,369 crore and subordinated debt worth Rs 156 crore to 'CARE AAA; Stable' from 'CARE AA+; Stable'. It said that this was based on recent developments, including the company's operational and financial performance of the company for FY25 and first half of the ongoing financial year 2026 (H1 FY26).

It also reaffirmed its 'CARE A1+' rating for the company's commercial paper.

Shriram Finance-MUFG deal:

Shriram Finance on December 19 announced that MUFG Bank will acquire 20 percent stake in the NBFC for Rs 39,600 crore ($4.4 billion) through preferential allotment of equity shares. This marks the largest FDI in India's financial sector.

The floor price for the preferential issue was set at Rs 840.83 per share, with MUFG set to acquire 47.11 crore equity shares.

Shriram, India's second-biggest non-bank lender after Bajaj Finance, operates businesses across urban and rural areas, focusing on loans for commercial vehicles, tractors and passenger cars.

Brokerages expect the deal to strengthen Shriram Finance's balance sheet, bolster growth prospects and potentially pave the way for a credit rating upgrade. They have raised target prices and remain broadly positive on the long-term outlook, despite near-term earnings dilution from the expanded equity base.

Shriram Finance Q2 results:

The NBFC major in October reported a consolidated net profit of Rs 2,315 crore for Q2 FY26, up 11.6 percent year-on-year. Net interest income rose 10 percent year-on-year to Rs 6,026 crore, broadly in line with expectations, while pre-provision operating profit stood at Rs 4,446 crore. Net interest margin was steady at 8.19 percent, indicating disciplined cost control and stable yields.

Shriram Finance share price:

Shriram Finance shares have gained more than 3 percent in the past five days, and over 14 percent in the past one month. The stock jumped nearly 38 percent in the past six months, and is up nearly 67 percent in 2025 so far.

Its P/E ratio stands at around 19.

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