Shriram Finance to issue equity shares to MUFG Bank

Shriram Finance Limited announced an upcoming Extra-Ordinary General Meeting on Wednesday, January 14, 2026, to approve a preferential issue of 47,11,21,055 equity shares to MUFG Bank Ltd. The issuance, valued at INR 3,96,17,98,28,781.15, will be at an issue price of INR 840.93 per share, representing 20% of the company's post-preferential equity share capital on a fully diluted basis. The primary objectives for this capital raise include onward lending, retirement of borrowings, and general corporate purposes, with CRISIL Ratings Limited appointed to oversee the utilization of funds.

The Extra-Ordinary General Meeting will also address the approval of special rights granted to MUFG Bank Ltd, in accordance with SEBI Regulations. These rights, effective as long as MUFG Bank Ltd maintains at least 10% shareholding, include the nomination of up to two non-executive, non-independent directors and pre-emptive rights to maintain proportionate shareholding. Additionally, MUFG Bank Ltd will have the right to second up to six personnel to Shriram Finance.

Shareholders will also vote on a one-time, non-recurring payment of $200,000,000 from MUFG Bank Ltd to Shriram Ownership Trust, the company's promoter. This payment is for non-compete and non-solicit obligations, aiming to protect the company's business and prevent potential conflicts of interest. The remote e-voting period for these resolutions will commence on Sunday, January 11, 2026, and conclude on Tuesday, January 13, 2026.