MUFG investment a ‘vote of confidence’ in Shriram Finance, may lower funding costs and trigger rerating: Gurmeet Chadha

Strategic investor MUFG’s proposed equity infusion into Shriram Finance is a strong vote of confidence in India’s NBFC sector, said Gurmeet Chadha of Complete Circle Consultants. The deal could lower Shriram’s cost of funds, trigger a rating upgrade, support growth capital needs and lead to a rerating, with positive spillovers for well-run NBFCs.