Shriram Finance on Friday informed stock exchanges that its board has approved entering into definitive agreements with MUFG Bank for an equity investment of Rs 39,618 crore, or around USD 4.4 billion, through a preferential issuance of shares.
In a regulatory filing dated December 19, 2025, the company said the proposed transaction will result in MUFG Bank acquiring a 20% stake in Shriram Finance on a fully diluted basis. The investment is subject to shareholder approval, regulatory clearances, and customary closing conditions.
According to the company, this transaction is set to become the largest foreign direct investment in an Indian financial services company. Shriram Finance stated that the capital infusion will significantly strengthen its balance sheet and capital adequacy, while providing long-term growth capital to support its expansion plans.
The collaboration is expected to combine Shriram Finance’s domestic distribution network with MUFG Bank’s global financial expertise. The company noted that the partnership could improve access to lower-cost funding, support technology and innovation initiatives, and align governance and operational practices with global standards.
MUFG Bank’s parent, Mitsubishi UFJ Financial Group, has had a presence in India for over 130 years, with cumulative investments of about USD 1.7 billion. The investment in Shriram Finance will mark MUFG’s largest investment in India to date.
Shriram Finance is India’s second-largest retail non-banking financial company in terms of assets under management, with AUM exceeding Rs 2.81 trillion as of the latest disclosure.
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