Investor MUFG Bank does not need RBI nod to buy 20% stake, says Shriram Finance
This story was originally published at 19:24 IST on 13 February 2026
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NEW DELHI – MUFG Bank Ltd. does not need prior approval from the Reserve Bank of India to proceed with the proposed investment of INR 396.18 billion in Shriram Finance Ltd. to buy 20% stake in the non-banking finance company, the latter informed the exchanges Friday. "Other approval(s) in relation to the Proposed Transaction are awaited and the Company will provide further updates with respect to the same, as and when such approvals are received," Shriram Finance said in a filing.
The Japanese bank's purchase of stake in Shriram Finance marks the largest foreign direct investment in a financial services company in India. The stake purchase will also be the biggest investment for MUFG Bank's parent entity, Mitsubishi UFJ Financial Group, in India. The confirmation that RBI approval is not needed for the stake purchase marks a significant milestone for the transaction.
MUFG Bank will buy 471.12 million shares in Shriram Finance at INR 840.93 per share by way of a preferential issue on a private placement basis. In December, MUFG Bank had announced its decision to acquire 20% stake in Shriram Finance. Earlier this month, the National Stock Exchange and BSE granted in-principle approval for the acquisition.
For the December quarter, Shriram Finance reported a net profit of INR 25.22 billion, up 21% on year from an adjusted net profit of INR 20.80 billion a year ago. Shares of the company ended 1.6% lower Friday at INR 1,065.80 on the National Stock Exchange. End
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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