Shriram Finance Climbs After Company Dismisses MUFG Stake Sale Speculation As 'Rumor'

Shares of Shriram Finance jumped more than 2% on Wednesday after the company shot down reports that Japan's Mitsubishi UFJ Financial Group (MUFG) was in talks to buy a 20% stake worth ₹23,200 crore.

In a late Tuesday filing, the non-banking finance giant said it was clarifying the matter“in good faith” to stop any misinformation and keep investors fully informed.“The Company is not aware of any such potential majority stake sale of equity shares of the Company by any shareholder(s),” Shriram Finance said.

The clarification followed reports suggesting MUFG was in advanced negotiations for the investment, which would have made it the largest foreign investor in an Indian NBFC through a primary share issuance. Shriram Finance, however, categorically stated that it had no knowledge of any such transaction and that no shareholder had communicated with the company regarding the matter.

“In this regard, the Company has clarified to the said mainstream media that this is a rumour/speculation and has categorically denied the knowledge about information of such stake sale to any party,” the company said in its statement, urging investors to disregard“any misleading information.”

Promoters currently hold a 25.39% stake in Shriram Finance, down from 29.37% in September 2022. Foreign investors own 52.61%, while domestic institutional investors hold 16.32%. The Government of Singapore holds a 5.41% stake, with the Monetary Authority of Singapore and New World Fund Inc. also among key foreign shareholders.

On Stocktwits, retail sentiment was 'bullish' amid 'low' message volume.

Shriram Finance's stock has risen 8% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN01102025007385015968ID1110134729