Japan’s MUFG Bank buys 20% stake in Shriram Finance in Rs 39,618 crore deal, marking largest cross-border investment in in India’s financial services sector.  

The transaction was executed through a preferential allotment of equity shares, following approvals from regulatory authorities, including the Competition Commission of India (CCI).

Key Highlights
• MUFG Bank subscribed to over 47 crore equity shares of Shriram Finance
• Issue price stood at Rs 840.93 per share
• Total investment value reached Rs 39,618 crore
• MUFG will hold a 20% stake on a fully diluted basis  

This investment represents the largest cross-border deal in India’s financial services sector, underscoring strong global confidence in the country’s NBFC ecosystem.

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Strategic Significance

The partnership between MUFG Bank and Shriram Finance is expected to:
• Strengthen Shriram Finance’s capital base
• Support long-term growth and expansion
• Enhance access to global funding and expertise
• Boost financial inclusion across India
Shriram Finance, one of India’s leading non-banking financial companies (NBFCs), is expected to leverage MUFG’s global network to scale its operations and improve lending capabilities.  

The investment is being seen as a long-term strategic collaboration, rather than just a financial transaction.