Shriram Finance shareholders approve acquisition of stake in co by MUFG Bank
This story was originally published at 20:33 IST on 14 January 2026
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NEW DELHI – Shareholders of Shriram Finance Ltd. have approved the proposed investment of INR 396.18 billion by MUFG Bank Ltd. in the company through a preferential issue of equity shares to the Japan-based financial conglomerate. In December, MUFG Bank had announced its decision to acquire 20% stake in Shriram Finance.
This stake sale in Shriram Finance marks the largest foreign direct investment in a financial services company in India. The stake purchase is also the biggest investment for MUFG Bank's parent entity, Mitsubishi UFJ Financial Group, in India.
MUFG Bank will have to pay a one-time, non-compete and non-solicit fee of $200 million to Shriram Ownership Trust, a major shareholder of Shriram Finance. MUFG Bank will buy 471.12 million shares of Shriram Finance at INR 840.93 per share. The Japanese bank can nominate up to two non-independent directors on Shriram Finance's board, the non-banking financial company had said in December.
On Wednesday, shares of Shriram Finance ended flat at INR 981.10 on the National Stock Exchange. End
Reported by Sagar Sen
Edited by Ashish Shirke
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