MUFG Bank to Invest INR 39,618 Crore in Shriram Finance via Preferential Equity Issuance

New Delhi, Dec 20: The Board of Directors of Shriram Finance Limited  at their meeting held today approved entering into definitive agreements with MUFG Bank Ltd.  for an investment of INR 39,618 crore  in SFL through a preferential issuance of equity shares. This investment will result in MUFG Bank acquiring a 20.0 % stake on a fully diluted basis.

This landmark transaction underscores SFL’s status as India’s second largest retail Non- Banking Financial Company in terms of assets under management and represents a significant milestone for the Indian financial services industry on account of :

The proposed minority investment by MUFG Bank is subject to shareholder approval, regulatory clearances and customary closing conditions.

This collabaration combines SFL’s established domestic franchise and extensive distribution network with MUFG Banks’s global expertise and financial strength. The fund infusion will significantly enhance SFL’s capital adequacy, strengthen its balance sheet, and provide long- term growth capital. This collabaration is further expected to unlock synergies in technology, innovation, and customer engagement, driving sustainable growth. It will improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings while aligning governance and operational practices with global best standards.

This investment reflects MUFG Bank’s confidence in India’s dynamic financial services sector. Mitsubishi UFJ Financial Group  MUFG Bank’s parent entity, has a legacy of over 130 years in India, contributing USD 1.7 billion in investments and creating jobs approximately 5,000 people. The investment in SFL will be MUFG’s largest investment in India, reinforcing its commitment to financial inclusion and sustainable growth.

Umesh  Revankar,  Executive  Vice  Chairman,  Shriram  Finance  Limited,  said:

 “This transaction marks a defining moment in our growth journey. MUFG is one of the largest financial institution, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in India’s financial services sector and our role as a leader within it. Together, we aim to strengthen our capabilities, drive economic progress, and create meaningful impact across communities, building a future-ready institution anchored in trust and good governance.”

 “MUFG is proud to enter into this transaction and become a strategic partner of Shriram Finance, one of India’s most respected financial institutions. MUFG and Shriram Finance share a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India.”