Shriram Finance SignsPact with Japan’s MUFG Bank to Raise Investment of Rs 39,618 crore
In December 2025, Shriram Finance Limited (SFL), India’s 2nd largest Non-Banking Finance Company (NBFC), announced that it has entered into a definitive agreement with MUFG Bank Limited, Japan’s largest lender and wholly-owned subsidiary of Mitsubishi UFJ Financial Group (MUFG), for an investment of Rs 39,618 crore(USD 4.4 billion).
In December 2025, Shriram Finance Limited (SFL), India’s 2nd largest Non-Banking Finance Company (NBFC), announced that it has entered into a definitive agreement with MUFG Bank Limited, Japan’s largest lender and wholly-owned subsidiary of Mitsubishi UFJ Financial Group (MUFG), for an investment of Rs 39,618 crore(USD 4.4 billion).
- MUFG Bank will invest in SFL through a preferential issuance of equity shares, marking the largest-ever foreign direct investment (FDI) in India’s financial services sector.
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- What? SFL Signed Pact with Japan’s MUFG Bank
- Purpose: To raise Rs 39,618 crore from MUFG Bank
- Key Outcome: MUFG Bank to Acquire 20% in SFL
- Significance: Single Largest FDI in India’s Financial Services Sector
Key Details:
Stake Acquisition: Following the investment, MUFG Bank will acquire a 20% stake in Shriram Finance and gain the right to nominate two non-independent directors to its board.
- Upon completion of the deal, MUFG Bank will be designated as a public shareholder of SFL.
Key Changes: Also, after the transaction is completed, the shareholding of key promoters in SFL i.e. Shriram Ownership Trust and Sanlam of South Africa will be diluted from 25.39% to 20.05% on an expanded capital base.
Other Key Shareholders: The remaining shareholders in SFL are: the Government of Singapore (4.73%); Kotak Mahindra Mutual Fund (MF) (2.09%), Fidelity (1.14%) and Monetary Authority of Singapore (1.07%), among others.
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