Shriram Group

Japan's MUFG Bank on Wednesday acquired 20 per cent stake in Shriram Finance Ltd (SFL) for Rs 39,618 crore. The transaction represents the largest cross-border investment in India's financial services sector. "This follows the approval by SFL's Board of Directors, at its meeting held today, of the allotment of equity shares to MUFG Bank through a preferential issue," SFL said in a statement. MUFG Bank has subscribed to 471,121,055 equity shares at an issue price of Rs 840.93 per share, with the total investment amounting to approximately Rs 39,618 crore, it said. The investment has been undertaken after obtaining all requisite regulatory and statutory approvals, including approval from the Competition Commission of India. Upon completion of the allotment, MUFG Bank will hold a 20 per cent equity stake in SFL on a fully diluted basis, it said. It further strengthens MUFG's presence in India and enables SFL to leverage MUFG's global expertise and capabilities to accelerate its long

Despite the gains, Shriram Finance shares remain 6.54 per cent below their 52-week high of ₹1,108.00 touched earlier this year on February 26, 2026

Antique expects Shriram Finance to deliver an AUM and PAT CAGR of around 18 per cent each over FY26-28, with average RoA/RoE of around 3.7 per cent and 14 per cent, respectively

Japanese lender to acquire 20% stake in NBFC via preferential allotment, marking one of the largest FDI deals in India's financial services sector

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

Since the deal was announced, MUFG has fielded calls from automakers seeking to grow sales, for instance by offering preferential financing through Shriram

Shriram Finance expects fresh NCD pricing to fall 30-40 bps and slip below 8 per cent after its AAA upgrade, but it may delay fund-raising as MUFG's $4.4 billion capital is awaited

Care Ratings upgraded Shriram Finance's NCD and subordinated debt ratings to AAA and reaffirmed its commercial paper rating at Care A1+, citing FY25 and H1FY26 performance

MUFG Bank said it will not raise its stake above the proposed 20 per cent in Shriram Finance and has no plans to invest in other Shriram Group entities, even as SFL approved a $4.4 billion deal

MUFG Bank's Rs 39,620 crore preferential investment could lift Shriram Finance's capital ratios, support faster AUM growth and a rating upgrade, though RoE may dilute near term

Shriram Finance shares rose to a record high after brokerages said MUFG Bank's proposed investment would sharply lift net worth, capital adequacy and support faster growth

Japan-based Mitsubishi UFJ Financial Group will invest nearly Rs 39,618 crore to acquire a 20 per cent stake in Shriram Finance through a preferential share issue

Shriram Finance said its board has approved entering into definitive agreements with MUFG Bank Ltd for an investment of ₹39,618 crore, or about $4.4 billion

Shriram Finance said the company is on a growth trajectory and routinely explores opportunities that are aimed at enhancing shareholder value

At 9:35 AM, Shriram Finance share price was trading at ₹868, up 2.33 per cent. In comparison, BSE Sensex was trading 0.19 per cent higher at 84,843.85 levels.

Shriram's shares have risen almost 50 per cent this year, giving the Mumbai-based financial services firm a market value of roughly $18 billion

In the past two months, the stock price of the non-banking finance company (NBFC) has surged 34 per cent after it reported a steady performance in the September 2025 quarter (Q2FY26)

Shriram Finance delivered a better-than-expected Q2FY26, with stronger margins, stable credit costs, and improving vehicle and MSME trends, supporting a confident outlook for the rest of the year

The insurer plans to quadruple its premium base by 2030 as it expands its advisor network and motor portfolio while maintaining strong profitability and solvency

In the past one month, Shriram Finance stock has outperformed the market by surging 23 per cent, as compared to 3.3 per cent rise in the BSE Sensex.