Japan's MUFG Bank Invests ₹39,618 Crore in Shriram Finance

Japan's MUFG Bank has finalized an investment of ₹39,618 crore to acquire a 20% stake in Shriram Finance Ltd (SFL). This transaction stands as the largest cross-border investment ever recorded within India's financial services sector. The deal received approval from SFL's Board of Directors through a preferential issue.

MUFG Bank subscribed to 471,121,055 equity shares at ₹840.93 per share, totaling the substantial investment. Regulatory approvals, including from the Competition Commission of India, were secured prior to the transaction's completion.

This significant stake acquisition will bolster MUFG's presence in India. SFL is poised to benefit from MUFG's global expertise, aiding its long-term growth strategy. The collaboration is expected to drive innovation and improve access to diversified funding sources for SFL.

Shriram Finance anticipates this investment will significantly strengthen its capital base. The company aims to accelerate growth across its key business segments, focusing on responsible expansion. MUFG Bank views this as a key step in its long-term commitment to the Indian market.

Executive Vice Chairman Umesh Revankar highlighted that the collaboration will foster innovation and enhance access to cost-effective funding. MUFG President and Group CEO Junichi Hanzawa expressed confidence in SFL's potential within the MSME and retail segments, foreseeing contributions to India's economic growth and financial inclusion.