MUFG to acquire 20% stake in Shriram Finance for $4.4 bn

MUFG Bank is set to become a minority investor in Shriram Finance Limited (SFL), acquiring approximately 20% of the total issued share capital through a preferential allotment. This $4.4 bn capital injection will dilute Sanlam’s effective shareholding in SFL from approximately 9.5% to 7.6%. This transaction aims to enhance SFL's capital adequacy, strengthen its balance sheet, and support long-term growth. The deal is subject to SFL shareholder approval and Indian regulatory clearances.

Sanlam also provided updates on its insurance businesses in India, confirming the expected regulatory approval for its acquisition of additional interests in Shriram General Insurance Company (SGIC) and Shriram Life Insurance Company (SLIC). These transactions will increase Sanlam's effective economic stakes to 50.99% in SGIC and 53.69% in SLIC.

Additionally, Sanlam has entered into a "Piramal Transaction" to acquire an additional 14.72% in SLIC from Piramal Finance Limited. This will increase Sanlam’s effective economic shareholding in SLIC to 68.41%, positioning Sanlam as the controlling shareholder. Both the insurance and Piramal transactions are expected to close in Q1 2026.