MUFG Bank Invests ₹396.2 Billion in Shriram Finance, Acquires 20% Stake

MUFG Bank has completed a ₹396.2 billion investment in Shriram Finance through a preferential allotment, marking one of the largest cross-border deals in India’s financial services sector, the company announced via a press release.

The bank subscribed to 471.1 million equity shares at ₹840.9 per share, following approval from Shriram Finance’s board on April 8. The transaction received all necessary regulatory clearances, including approval from the Competition Commission of India, the release said.

Post allotment, MUFG Bank will hold a 20.0% equity stake in Shriram Finance on a fully diluted basis.

The company expects the investment to strengthen MUFG’s presence in India and is expected to support Shriram Finance in accelerating its long-term growth, particularly across MSME and retail segments.

Further the company added the partnership will enhance access to diversified and cost-effective funding, while also supporting improvements in risk management and governance through global best practices.

The deal also deepens strategic collaboration between the two entities, with a focus on driving sustainable growth and expanding financial inclusion in India.