Japan’s MUFG Invests Rs 39,600 cr In Shriram Finance

Chennai: In one of the largest investments in the NBFC space, Mitsubishi UFJ Financial Group (MUFG) will invest INR 39,618 crore ($4.4 billion) in Shriram Finance to acquire a 20 per cent stake in the company.

The company’s Board of Directors on Friday approved the preferential issuance of equity shares to Japan’s MUFG. The company will issue 47.11 crore fully paid-up equity shares of face value Rs 2 at a price of Rs 840.93.

The company claimed that it is the largest FDI in a financial services company in India.

This collaboration 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. It will improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings.

“Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India,” Hironori Kamezawa, Group Chief Executive Officer, Mitsubishi UFJ Financial Group said.

Shriram Finance is the flagship company of the Shriram Group, with presence in Credit, Insurance, Asset Management, Wealth Management, Asset Reconstruction, Stock Broking, and Distribution businesses and Assets Under Management (AUM) exceeding Rs 2.81 lakh crore.

“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.” Umesh Revankar, Executive Vice Chairman, Shriram Finance said.