Shriram Finance Ltd

- Shriram Finance Limited is expecting to complete a significant equity infusion through a strategic partnership with MUFG, involving a 20% stake with fresh capital approximately US$4.4 billion. - The transaction completion is targeted around 2-3 months post the EGM scheduled for January 14, 2026, subject to RBI and CCI approvals, potentially finalized within the current financial year or by April 2026 at the latest. - No immediate plans for further equity capital or stake increase by MUFG beyond this 20% investment. - On the debt side, Shriram Finance anticipates a 100 basis point improvement in blended cost of funds over 2-3 years due to replacement of existing debt and cheaper incremental borrowings. - The company aims to leverage improved rating and capital infusion to reduce borrowing costs and finance faster growth, with no specific new debt fundraising announced, but reliance on refinancing and growth-linked incremental liabilities.

- The company is focused on leveraging the fresh capital infusion (~US$4.4 billion from MUFG) primarily for accelerated growth rather than immediate large capital expenditure or acquisitions. - There are no plans for inordinate growth through acquisitions as per management statements. - Strategic investments by MUFG personnel will primarily be in digital capabilities, account maintenance, and reporting, rather than direct senior management or KMP roles. - Expansion will focus on increasing branch presence in northern, central, and eastern India, converting rural centers to branches to enhance reach. - Growth capital will predominantly be utilized in core segments: vehicles (commercial, construction, passenger vehicles) comprising 70% of the book and increasing gold financing by 2%. - No indication of large-ticket SME lending or LAP expansions; growth is focused on existing and new vehicle loans to existing customers.

- Shriram Finance aims to accelerate growth from the current 15%-16% to around 18%-20% over the next few years. - Growth is expected primarily through increased lending to existing customers, especially in new vehicle loans. - The company plans to double its new vehicle market share from around 3% within the next three years. - Expansion will focus on semi-urban and rural areas, especially in northern, central, and eastern India, avoiding metro markets. - Anticipated GDP growth of around 8% in recent quarters supports credit demand and growth prospects. - Credit demand in India is expected to grow about 2.5 times GDP, roughly 20%, aligning with Shriram’s target growth. - The fresh capital infusion and improved funding cost (100 bps reduction) will enable higher growth and customer retention. - No plans for aggressive new customer acquisition; growth will come from better retention and select customer expansion.

- Shriram Finance aims to accelerate growth from the current 16%-17% to 18%-20% CAGR, leveraging the fresh capital infusion and favorable economic conditions. - The cost of borrowing is expected to reduce by about 100 basis points over 2-3 years due to the strategic investment by MUFG and rating upgrades, enhancing profitability. - Return on Assets (ROA) is targeted to improve from the current ~2.8% to approximately 3.6% over the next 4-5 years; interim ROA may peak around 3.8% shortly after capital infusion. - Return on Equity (ROE) will initially dip to ~13.5% post capital raise but is expected to revert to previous levels (~31%) over 5 years. - Net interest margins could expand due to a reduction in borrowing costs and selective lending to new vehicle customers. - Credit costs are anticipated to improve marginally by 10-20 basis points, aiding bottom-line growth. - Management emphasizes conservative growth without aggressive acquisitions or riskier lending segments, focusing on existing customer retention and selected portfolio expansion.

The transcript provided does not include specific details on Shriram Finance Limited's current or expected order book or pending orders. The discussion mainly centers around: - Capital infusion from MUFG (approx. US$4.4 billion) and its strategic implications. - Growth targets of 18%-20% supported by new capital and economic conditions. - Business focus on vehicle and non-vehicle financing with stable product mix (around 80-20). - Leverage target of debt-to-equity ratio of around 4.5x. - ROA improvement expectations from current 2.8% to about 3.6% over the next 5 years. - Emphasis on cautious growth in SME and secured lending. - No mention or disclosure of specific order book or pending orders data. Therefore, there is no explicit information available on order books or pending orders in this transcript.