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MUFG Explores Path to Majority Control of India Shriram Finance
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Moneycontrol•13-10-2026, 15:33
MUFG Explores Path to Majority Control of India Shriram Finance
- •Mitsubishi UFJ Financial Group is in early discussions to increase its stake in Shriram Finance Ltd from about 20% to over 50%.
- •A potential transaction could require injecting more than $10 billion, marking the largest foreign investment in India financial sector history.
- •Discussions remain at a preliminary stage with no firm timeline set for the potential deal.
- •The move reflects growing Japanese banking interest in India and highlights the country long-term economic growth prospects.
- •MUFG previously acquired a 20% stake in Shriram Finance for $4.4 billion in April, securing two board seats.
Key Questions Answered
Mitsubishi UFJ Financial Group Inc. currently holds a 20% stake in Shriram Finance Ltd. acquired for $4.4 billion(), and is studying ways to eventually gain majority control of more than 50% by potentially injecting over $10 billion more().
MUFG Bank acquired its initial 20% equity stake in Shriram Finance for Rs 39,618 crore, which is approximately USD 4.4 billion, through a preferential issue of 471,121,055 shares at an issue price of Rs 840.93 per share().
The transaction required and obtained approval from the Competition Commission of India (CCI) as well as confirmation from the Reserve Bank of India (RBI) stating that prior approval was not required for the proposed deal().
