MUFG Bank to invest ₹39,618 crore in Shriram Finance

Shriram Finance Limited (SFL) announced a strategic investment by MUFG Bank Ltd. of ₹39,618 crore through a preferential issuance of equity shares. This investment will grant MUFG Bank a 20.0% stake in SFL on a fully diluted basis, positioning it as the largest FDI in an Indian financial services company. The transaction aims to enhance SFL's capital adequacy, strengthen its balance sheet, and accelerate growth by improving access to low-cost liabilities and potentially strengthening credit ratings.

The board of directors of SFL approved the issuance of 47,11,21,055 equity shares at ₹840.93 per share. This includes a premium of ₹838.93 per equity share. The deal is contingent on shareholder and regulatory approvals, including those from the RBI and CCI, and subject to customary closing conditions. Shareholders will also vote on granting MUFG Bank the right to nominate up to two non-independent directors and a non-compete fee of $200,000,000 to Shriram Ownership Trust.

Separately, Shriram Capital Private Limited (SCPL), a promoter entity, is exploring restructuring options for its lending/credit business, as recorded by its board on December 18, 2025. This possible restructuring is at a preliminary stage with no final decisions, commitments, or timelines, and is subject to detailed evaluation and regulatory compliance. An extra-ordinary general meeting for SFL shareholders is scheduled for January 14, 2026, to approve the preferential issue and related matters.