Japan’s MUFG Bank has acquired a 20 per cent equity stake in Shriram Finance for Rs 39,618 crore, marking the largest cross-border investment ever in India’s financial services sector.
The investment was completed through a preferential allotment of shares, following approval by Shriram Finance’s board at a meeting held on Wednesday. The non-bank lender said MUFG Bank subscribed to 471,121,055 equity shares at an issue price of Rs 840.93 per share, translating into a total investment of about Rs 39,618 crore.
The transaction has received all necessary regulatory and statutory clearances, including approval from the Competition Commission of India. Post-allotment, MUFG Bank will hold a 20 per cent stake in Shriram Finance on a fully diluted basis.
The deal follows a definitive agreement signed in December by Mitsubishi UFJ Financial Group Inc to acquire a minority stake in the Chennai-headquartered lender, underscoring the Japanese banking group’s long-term commitment to the Indian market.
Shriram Finance said the investment strengthens MUFG’s presence in India while enabling the lender to tap the Japanese bank’s global expertise, balance sheet strength and capabilities to accelerate its long-term growth plans. The partnership is also expected to deepen collaboration in areas such as funding diversification, risk management and governance.
“This collaboration will open new avenues for innovation, enhance access to diversified and cost-effective funding, and support the adoption of global best practices,” said Umesh Revankar, executive vice chairman of Shriram Finance.
Both companies said the completion of the transaction marks a key milestone in their strategic partnership and reinforces a shared commitment to driving sustainable growth and expanding financial inclusion across India. |
