Shriram Finance Shares Jump 4%, MUFG To Buy 20% Stake For ₹39,618 Crore
Shriram Finance Ltd saw its shares rise by nearly 4% after Japan’s MUFG Bank announced a major investment. The deal involves a ₹39,618 crore (around USD 4.4 billion) stake in the Indian financial firm. This move marks one of the largest foreign investments in India’s non-banking finance sector in recent years.
MUFG will acquire a 20% minority stake in Shriram Finance through preferential equity shares. The transaction remains subject to shareholder approval, regulatory clearances, and standard closing conditions.
The partnership aims to boost Shriram Finance’s capital base and accelerate its growth plans. It will also improve access to low-cost funding, potentially lifting the company’s credit ratings. Additionally, the collaboration seeks to align governance and operations with global best practices. Definitive agreements have already been signed, reinforcing confidence in India’s financial sector. The deal is expected to enhance Shriram Finance’s capital adequacy, strengthen its balance sheet, and provide long-term growth capital. Beyond financial benefits, the partnership may unlock synergies in technology, innovation, and customer engagement. Jugal Kishore Mohapatra, chairman of Shriram Finance’s board, is overseeing the agreement. The investment reflects MUFG’s strategic interest in expanding its presence in India’s growing financial market.
The ₹39,618 crore investment will solidify Shriram Finance’s financial position and support its expansion. Once approved, the deal will also reinforce MUFG’s footprint in India’s non-banking finance industry. The partnership is set to bring operational improvements and greater access to funding for Shriram Finance.
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