Shriram Finance Shares Extend Bullish Run To Hit Record High After Rs 40,000-Crore MUFG Deal
India's second-largest retail non-banking financial company has also received target price hikes by brokerages on the landmark MUFG deal.
Shares of Shriram Finance Ltd extended their bullish run for the second straight session on Monday, Dec. 22 to hit a fresh record high after announcing the stake acquisition deal worth nearly Rs 40,000 crore by Japanese MUFG Bank.
India's second-largest retail non-banking financial company has also received target price hikes by brokerages on the landmark MUFG deal. Nomura has maintained its "buy" rating and raised its price target on the stock to Rs 1,140.
Out of 37 analysts tracking the company, 35 maintain a 'buy' rating, three recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target stands at Rs 938.25 indicating an upside of 2.2%.
Japan’s Mitsubishi UFJ Financial Group (MUFG) will invest nearly Rs 39,718 crore or $4.5 billion for a 20% stake in Shriram Finance Ltd, marking the largest strategic investment by a foreign lender in India's NBFC sector. According to the deals of the transaction, Japan's MUFG will acquire 47.1 crore shares at a floor price of Rs 840.93 per share.
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