Shriram Finance gets NSE/BSE nod for Rs 3,962 cr preferential issue to MUFG Bank
SHRIRAMFIN · price
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On the reaction day the stock moved 0.4 pts less than Nifty 100 and 0.1 pts less than its Non Banking Financial Company (NBFC) peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Shriram Finance has received in-principle approval from BSE and NSE to allot 47.11 crore equity shares of face value Rs 2 at Rs 840.93 per share to MUFG Bank via preferential issue on private placement basis. Total issue size is about Rs 3,962 crore. This brings in MUFG Bank, one of Japan's largest banks, as a strategic shareholder.
Dilutive for existing shareholders; strategic investment from global bank MUFG may strengthen capital base and long-term credibility.