MUFG will not need RBI approval to acquire 20% in Shriram Finance

Shriram Finance says RBI has confirmed Japan's MUFG Bank does not require prior approval for proposed 20% stake acquisition

Shriram Finance on Friday said it has confirmation from the Reserve Bank of India (RBI) that Japan’s MUFG Bank does not require prior approval to buy a 20 per cent stake.

 

“We have been informed by the investor that the Reserve Bank of India (RBI) has confirmed that the investor is not required to obtain prior approval from the RBI for the proposed transaction,” the NBFC said in an exchange filing. 

Shriram Finance has proposed the issuance of 47,11,21,055 equity shares of the company to MUFG Bank through a preferential issue on a private placement basis in terms of the investment agreement dated December 19, 2025. 

In December 2025, MUFG announced the acquisition of a 20 per cent stake in Shriram Finance Ltd for Rs 39,620 crore. MUFG and Shriram Finance have agreed to a strategic partnership, under which MUFG will nominate two directors to the board of Shriram Finance.

 

Shriram Finance also said that “other approvals in relation to the proposed transaction are awaited and the company will provide further updates with respect to the same, as and when such approvals are received.”