Shriram Finance Share Price Today (24 Dec 2025): Stock Hits Fresh 52-Week High as MUFG Deal Fuels Rerating

Shriram Finance Limited (NSE: SHRIRAMFIN, BSE: 511218) stayed in the spotlight on Wednesday, December 24, 2025, extending its post-deal momentum. The stock traded around ₹977 by midday, after touching an intraday high near ₹983, marking a fresh 52-week high as investors continued to price in the implications of Japan’s MUFG taking a strategic stake. ^[1]

The trigger remains the same—but the market’s interpretation is evolving fast: MUFG’s proposed investment is being read not just as “more capital,” but as a potential catalyst for cheaper funding, stronger credit perception, and faster medium-term growth for one of India’s biggest retail-focused NBFCs. ^[2]

Shriram Finance stock: what’s happening on 24 December 2025?

By 24 Dec 2025 (mid-session), market data showed Shriram Finance at about ₹977 (+~2%) with the day’s range roughly ₹958–₹983 and a 52-week range of about ₹494–₹983. ^[3]

A separate technical screen making the rounds in early trade flagged that Shriram Finance was among the stocks that closed crossing above VWAP (volume-weighted average price)—a short-term momentum signal many traders track—after the previous session. ^[4]

The larger story, however, is still the MUFG transaction—and what it changes (and what it doesn’t).

MUFG–Shriram Finance deal: the core facts driving the rally

On December 19, 2025, MUFG agreed to acquire 20% of Shriram Finance for about $4.4 billion, a deal Reuters described as the largest cross-border investment in India’s financial sector. ^[5]

The structure is via a preferential issue: Shriram Finance’s board cleared the issuance of 47.11 crore equity shares at ₹840.93 per share, translating into MUFG’s 20% stake on a fully diluted basis (subject to approvals). ^[6]

A key nuance investors are weighing on Dec 24: while the issue price (₹840.93) helped set the deal terms, it now sits well below where the stock is trading in the secondary market this week—highlighting how strongly the market is “pulling forward” expected benefits such as balance-sheet strength and improved funding optics. ^[7]

Timeline and approvals: what must happen next

This isn’t a “done deal” yet.

The transaction is subject to shareholder approval and regulatory clearances. ^[8]
Shriram Finance has called an Extraordinary General Meeting (EGM) on January 14, 2026 to seek shareholder approval for the preferential issue and related items, according to multiple reports and market notices. ^[9]
Reuters also reported MUFG will receive minority protection rights, including the ability to nominate up to two non-independent directors and pre-emptive rights to maintain proportional ownership (with certain conditions around stake thresholds). ^[10]
The transaction includes a one-time $200 million non-compete/non-solicit fee payable to Shriram Ownership Trust, subject to shareholder approval. ^[11]

One detail that investors are debating (because it affects the “endgame” narrative): Reuters quoted a MUFG executive saying there’s a possibility of MUFG raising its stake above 50% in the future, depending on timing and conditions—though this is not framed as an immediate plan. ^[12]

“Will Shriram Finance become a bank?” Management pours cold water on the idea (for now)

Following the announcement (and a high-profile public nudge from veteran banker Uday Kotak), Shriram Finance leadership addressed the obvious question: does this partnership push Shriram toward a banking licence?

Multiple reports from Dec 22 onward quote top management saying there is no discussion / no immediate plan to apply for a banking licence right now, emphasizing the opportunity set within the NBFC model and Shriram’s customer base in underbanked segments. ^[13]

This matters for investors because the “NBFC vs bank” path changes everything—regulatory constraints, deposit franchise economics, leverage, and growth options. The company’s current stance keeps the investment thesis centered on retail asset-backed lending scale + funding-cost optimization, not on a structural transformation.

Another (quieter) regulatory angle: reapplying for a primary dealer licence

Away from the MUFG headlines, Informist reported that a wholly owned subsidiary of Shriram Finance plans to reapply to the RBI for a primary dealer (PD) licence by mid-January, after an earlier rejection, with an aim to start PD operations in the April–June period if approved. ^[14]

This isn’t the market’s main catalyst this week, but it’s relevant because it speaks to the group’s interest in deeper participation in fixed income markets—something that can influence funding, treasury strategy, and market access over time.

Why analysts see a rerating: capital, cost of funds, and “credibility premium”

A common thread across broker notes: this is a capital and credibility event.

Business Standard reported that brokers expect MUFG’s proposed infusion to lift Shriram Finance’s net worth by ~66% and take capital adequacy above 30%, while management indicated the company’s cost of funds could decline 50–75 bps over time as a result of the MUFG association and potential ratings benefit. ^[15]

Business Standard also highlighted how sharply the stock has rerated and how quickly it climbed market-cap rankings in December, noting the shares surged from the January low and that the company entered the top-50 most valuable club on the BSE amid the rally. ^[16]

The market’s logic chain (in plain English) looks like this:

More equity capital → stronger buffers → better perceived risk → potential rating upgrade + broader funding access → lower borrowing costs → healthier margins and/or faster AUM growth.

But there’s a twist: more capital can temporarily dilute RoE (return on equity) because equity rises faster than profits—at least until growth “catches up.” Several broker notes explicitly flag this near-term trade-off. ^[17]

Broker targets and upgrades: where forecasts stand as of 24.12.2025

In the days after the MUFG announcement, multiple brokerages raised targets—often significantly.

Economic Times (ETMarkets) summarized several key calls:

Nomura: target raised to ₹1,140; described the MUFG entry as a “big positive,” and talked about the strategic value of a premier Japanese bank partner. ^[18]
Citi: maintained Buy and raised target to ₹1,100 (from ₹870), citing balance sheet strengthening; the note also discussed Tier-1 capital moving sharply higher post-deal. ^[19]
Motilal Oswal: reiterated Buy; raised target to ₹1,100; expects strong profit growth over FY25–FY28E in its framing. ^[20]
PL Capital: reiterated Buy; raised target to ₹1,060, while cautioning that RoE may stay subdued near-term due to higher capital levels. ^[21]
Emkay: reiterated Buy; raised target to ₹1,050, arguing the MUFG link could help narrow the cost-of-funds gap versus AAA peers over time. ^[22]

Separately, Moneycontrol’s broker research piece cited ICICI Securities as bullish with a Buy call and a target of ₹1,225 (dated Dec 19, 2025). ^[23]

Business Standard’s market analysis also referenced an ICICI Securities view that, factoring in book accretion and rolling estimates, implied a target near ₹1,200 under its valuation framework. ^[24]

Why targets differ so widely

The spread is not random. Most targets reflect different assumptions about:

How quickly the deal closes (and in which fiscal year the capital is recognized)
Whether a rating upgrade actually happens (and how fast)
The magnitude and timing of cost-of-funds reduction
The pace of AUM growth the larger capital base can support
How much the market is willing to pay (P/B multiple expansion)

Consensus forecasts: what “aggregator” views show on Dec 24 (and their limits)

If you look at consensus/aggregator-style forecasts, the picture can be more mixed than the bullish broker headlines.

TradingView’s analyst forecast snapshot showed an average/central target around the high-₹900s, with a max estimate of ₹1,225 and a min estimate in the high-₹700s range. ^[25]
Trendlyne’s page on Dec 24 displayed a last price near ₹977 alongside a consensus share price target of ₹890.24 (while also presenting other aggregated target statistics on the same page). ^[26]

These gaps usually come down to coverage and update cadence. Some aggregators pull from a subset of analysts (or lag on incorporating newly revised targets), while domestic brokerage notes—especially post-event—can update much faster.

For readers using “forecast” pages as a shortcut: treat them as a thermometer, not a diagnosis.

Fundamentals check: what Shriram Finance reported before the deal

The MUFG deal is about future capacity. But Shriram Finance’s pre-deal operating performance is also part of why the market believed a large strategic cheque was plausible.

For the September 2025 quarter (Q2 FY26):

Reuters reported profit rose 11.39% year-on-year to ₹23.07 billion for the quarter ended Sept 30, beating analyst estimates, and noted AUM rose 15.74% to ₹2.813 trillion, with growth across commercial vehicle and MSME loans. ^[27]
Business Standard reported consolidated net profit at ₹2,314 crore, total income at ₹11,921 crore, and improving asset quality with GNPA around 4.57% and NNPA around 2.49% (year-on-year improvement). ^[28]

In other words: the company entered the MUFG announcement with a narrative of growth + improving asset quality, not a “rescue capital” story.

Technical and trading view: momentum is real, but levels matter

From a market-structure standpoint, two things stand out on Dec 24:

The stock is hovering close to its fresh 52-week high zone (~₹983), which is psychologically important and often volatile. ^[29]
The VWAP-crossing screen suggests near-term momentum traders are paying attention to the move, not just long-term investors. ^[30]

That said, after a sharp multi-session run, price action can become headline-sensitive: any delays in approvals, unexpected conditions, or macro risk-off moves can trigger quick profit-taking.

Key risks investors are watching right now

Even in an upbeat tape, there are real risks that can change the story:

Regulatory and shareholder approval risk: the deal needs multiple approvals and a shareholder vote (EGM on Jan 14, 2026). ^[31]
RoE dilution / “overcapitalisation” phase: brokers themselves warn RoE can look softer near-term because equity rises immediately while earnings catch up later. ^[32]
Credit-cycle risk: Shriram Finance’s strength is retail asset-backed lending, including vehicles and MSME lending—segments that can be sensitive to economic slowdowns and used-vehicle price cycles. (This is a general sector risk; the company’s latest reported asset quality has improved, but cycles still matter.) ^[33]
Execution risk on the “funding benefit”: cost-of-funds improvement is expected “over time,” not instantly, and depends on how credit markets and ratings agencies respond. ^[34]

What to watch next into early 2026

For anyone tracking Shriram Finance stock into the new year, the next major checkpoints are straightforward:

January 14, 2026: shareholder vote at the EGM. ^[35]
Regulatory clearances needed to close the preferential issue. ^[36]
Any concrete signs of a rating outlook shift and/or measurable movement in funding cost spreads (this will likely show up gradually in disclosures and future quarterly commentary). ^[37]

Bottom line

As of 24.12.2025, Shriram Finance stock is trading at fresh highs because the market is treating MUFG’s entry as a potential structural rerating event: more capital, better perceived credit quality, and a path—over time—to lower funding costs and faster AUM compounding. ^[38]

The bull case is loud and numerically specific—targets from major brokerages cluster from roughly ₹1,050 to ₹1,225—but the near-term debate is equally clear: how quickly the deal closes, and how fast the financial benefits actually show up. ^[39]

References

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Shriram Finance Share Price Today (24 Dec 2025): Stock Hits Fresh 52-Week High as MUFG Deal Fuels Rerating — Analyst Targets Up to ₹1,225