Japan’s MUFG Bank has completed its investment in Shriram Finance, subscribing to 471.1 million equity shares through a preferential allotment, marking one of the largest cross-border deals in India’s financial services sector, Shriram Finance said in a press release.
The investment, made at ₹840.93 per share, aggregates to about ₹39,618 crore and gives MUFG a 20 per cent stake in the non-banking financial company (NBFC) on a fully diluted basis, the companies said on Tuesday.
Shares of Shriram Finance closed 9.9 per cent higher at ₹1,023.55 per share from the previous close. The transaction follows all necessary regulatory approvals, including from the Competition Commission of India.
The deal is expected to strengthen Shriram Finance’s capital base and support its growth across key segments, particularly MSME and retail lending. The partnership will also enable the company to tap MUFG’s global expertise in funding, risk management and governance.
Umesh Revankar, executive vice chairman of Shriram Finance, said the transaction marks the beginning of a long-term strategic collaboration that will enhance access to diversified and cost-effective funding while driving innovation. “The investment significantly strengthens our capital base and positions us to accelerate growth across key business segments. As we move forward, our focus remains on delivering consistent and responsible growth while creating long-term value for all stakeholders.”
Junichi Hanzawa, president and group chief executive officer of MUFG, said the investment underscores the Japanese lender’s long-term commitment to India and reflects confidence in Shriram Finance’s growth potential. “This investment represents an important step that underscores MUFG’s long-term commitment to the Indian market, and we believe it will contribute to India’s sustainable economic growth and the advancement of financial inclusion. Going forward, we will support SFL’s sustainable growth by leveraging MUFG’s customer network and experience cultivated through partner bank management.”
Shriram Finance, the flagship of the Shriram Group, is among India’s largest retail-focused NBFCs, with assets under management of over ₹2.9 trillion and a strong presence in financing commercial vehicles and small businesses.
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