DBT Bureau
Pune, 21 Dec 2025
Shriram Finance Limited (SFL) said it has approved entering into definitive agreements with MUFG Bank Ltd for an investment of ₹39,618 crore (approximately USD 4.4 billion) through a preferential issuance of equity shares. The investment will result in MUFG Bank acquiring a 20% stake in SFL on a fully diluted basis.
This transaction underscores SFL’s status as India’s second largest retail NonBanking Financial Company in terms of assets under management and represents a significant milestone for the Indian financial services industry on account of :
- Being the largest FDI in a financial services company in India
- Reinforcing confidence in India’s lending and financial services sector fundamentals and future growth potential
- Strengthening SFL’s capital base and accelerating its growth trajectory The proposed minority investment by MUFG Bank is subject to shareholder approval, regulatory clearances and customary closing conditions..
This collabaration combines SFL’s established domestic franchise and extensive distribution network with MUFG Banks’s global expertise and financial strength. The fund infusion will significantly enhance SFL’s capital adequacy, strengthen its balance sheet, and provide longterm growth capital. This collabaration is further expected to unlock synergies in technology, innovation, and customer engagement, driving sustainable growth. It will improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings while aligning governance and operational practices with global best standards
Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited, said: “This transaction marks a defining moment in our growth journey. MUFG is one of the largest financial institution, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in India’s financial services sector and our role as a leader within it. Together, we aim to strengthen our capabilities, drive economic progress, and create meaningful impact across communities, building a future-ready institution anchored in trust and good governance.”
Hironori Kamezawa, Group Chief Executive Officer, Mitsubishi UFJ Financial Group stated, “MUFG is proud to enter into this transaction and become a strategic partner of Shriram Finance, one of India’s most respected financial institutions. MUFG and Shriram Finance share a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India.”
From a closing price of ₹825 on November 24, the stock surged to ₹901.70 last Friday, marking a gain of about 9.3% and emerging as the top gainer.
(Source: Regulatory Filings)
Disclaimer: This information is for educational purposes only. Please consult your financial advisor before investing in stocks.
