Investment19 Dec 2025, 12:31 pm
MUFG Bank to Invest INR 39,618 crore in Shriram Finance, Acquiring a 20.0% Stake
AI Summary
The Board of Directors of Shriram Finance Limited approved entering into definitive agreements with MUFG Bank for an investment of INR 39,618 crore through a preferential issuance of equity shares. This investment will result in MUFG Bank acquiring a 20.0% stake on a fully diluted basis. This landmark transaction is the largest FDI in a financial services company in India and represents a significant milestone for the Indian financial services industry.
Key Highlights
- MUFG Bank to invest INR 39,618 crore (~USD 4.4 billion) in Shriram Finance through preferential issuance of equity shares
- MUFG Bank to acquire a 20.0% stake on a fully diluted basis in Shriram Finance
- Largest FDI in a financial services company in India
- Strengthening Shriram Finance’s capital base and accelerating its growth trajectory
- Combining SFL’s established domestic franchise and extensive distribution network with MUFG Banks’s global expertise and financial strength