MUFG Bank Buys 20.0 Per Cent Stake In Shriram Finance
ECONOMY & POLICY

MUFG Bank Buys 20.0 Per Cent Stake In Shriram Finance

MUFG Bank has completed an investment in Shriram Finance Limited by subscribing to 471,121,055 equity shares at an issue price of Rs 840.93 per share, with the total investment amounting to about Rs 396.18 billion (bn). The allotment was approved by Shriram Finance's board and followed receipt of regulatory clearances, including from the Competition Commission of India. Upon completion MUFG Bank will hold a 20.0 per cent equity stake on a fully diluted basis. The parties said the transaction is the largest cross-border investment in India’s financial services sector.

The investment strengthens MUFG’s presence in India and enables Shriram Finance to leverage MUFG’s global expertise to accelerate its long-term growth strategy. The collaboration is expected to expand access to diversified and cost-effective funding and to support the adoption of global best practices in risk management and governance. The partnership is intended to bolster Shriram Finance’s capital base and to support growth in retail and MSME segments while contributing to financial inclusion.

Shriram Finance’s executive leadership described the investment as the successful culmination of a landmark transaction and the start of a long-term strategic collaboration with MUFG, indicating expectations of innovation, enhanced funding access and strengthened governance. MUFG’s leadership said the investment underscores its long-term commitment to the Indian market and that it will support Shriram Finance’s sustainable growth by leveraging MUFG’s customer network and partner bank management experience. Both organisations signalled a shared commitment to delivering responsible growth and long-term value for stakeholders.

Shriram Finance is the flagship company of the Shriram Group and is India’s second largest retail non-banking financial company with assets under management exceeding Rs 2.91 trillion (tn). Established in 1979, it operates 3,225 branches, employs 77,724 people and serves 9.7 million (mn) customers across commercial vehicle, MSME, tractor, gold and personal loan businesses. MUFG is a global financial group with about 150,000 employees and operations in more than 40 markets.

MUFG Bank has completed an investment in Shriram Finance Limited by subscribing to 471,121,055 equity shares at an issue price of Rs 840.93 per share, with the total investment amounting to about Rs 396.18 billion (bn). The allotment was approved by Shriram Finance's board and followed receipt of regulatory clearances, including from the Competition Commission of India. Upon completion MUFG Bank will hold a 20.0 per cent equity stake on a fully diluted basis. The parties said the transaction is the largest cross-border investment in India’s financial services sector. The investment strengthens MUFG’s presence in India and enables Shriram Finance to leverage MUFG’s global expertise to accelerate its long-term growth strategy. The collaboration is expected to expand access to diversified and cost-effective funding and to support the adoption of global best practices in risk management and governance. The partnership is intended to bolster Shriram Finance’s capital base and to support growth in retail and MSME segments while contributing to financial inclusion. Shriram Finance’s executive leadership described the investment as the successful culmination of a landmark transaction and the start of a long-term strategic collaboration with MUFG, indicating expectations of innovation, enhanced funding access and strengthened governance. MUFG’s leadership said the investment underscores its long-term commitment to the Indian market and that it will support Shriram Finance’s sustainable growth by leveraging MUFG’s customer network and partner bank management experience. Both organisations signalled a shared commitment to delivering responsible growth and long-term value for stakeholders. Shriram Finance is the flagship company of the Shriram Group and is India’s second largest retail non-banking financial company with assets under management exceeding Rs 2.91 trillion (tn). Established in 1979, it operates 3,225 branches, employs 77,724 people and serves 9.7 million (mn) customers across commercial vehicle, MSME, tractor, gold and personal loan businesses. MUFG is a global financial group with about 150,000 employees and operations in more than 40 markets.

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