{"id":"f-e550251d2f-9bad31bd-bf5c-5a79-ac61-bc2b3e70e215","title":"MUFG to acquire 20% stake in Shriram Finance for ₹39,620 crore, to nominate two directors","description":"MUFG and Shriram Finance have agreed to a strategic partnership, under which, MUFG will nominate two directors to the board of Shriram Finance.","timestamp":1766159836,"category":"business","headline":"MUFG to acquire 20% stake in Shriram Finance for ₹39,620 crore, to nominate two directors","modifiedHeadline":"MUFG Buys 20% Stake in Shriram Finance","subCategories":["scid_4d81caea"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"68","fcSummary":"Mitsubishi UFJ Financial Group (MUFG) is set to acquire a 20% stake in Shriram Finance Ltd., forming a strategic partnership. MUFG will nominate two directors to Shriram Finance's board. This deal could be the largest in the Indian financial space in 2025.","summary":"MUFG invests ₹39,620 cr in Shriram Finance for 20% stake, gains board seats! A strategic move impacting financial landscape unfolds.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-9bad31bd-bf5c-5a79-ac61-bc2b3e70e215","sourceUrl":"https://www.cnbctv18.com/market/shriram-finance-share-price-board-meet-fund-raising-mufg-quantum-valuation-impact-19796118.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/v0eoGT3CT4l0.webp","content":"Japan's Mitsubishi UFJ Financial Group (MUFG) has announced the acquisition of a 20% stake in non-bank lender Shriram Finance Ltd\n., the Japanese firm said in a statement on Friday, December 19.\n\n
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\n MUFG and Shriram Finance have agreed to a strategic partnership, under which, MUFG will nominate two directors to the board of Shriram Finance.\n
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\n On Thursday, Reuters reported citing sources that Japan's Mitsubishi UFJ Financial Group (MUFG) is set to invest over $4 billion for close to 20% stake in Shriram Finance, which could turn out to be the largest deal of 2025 within the Indian financial space, surpassing the RBL Bank-Emirates NBD deal.\n
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\n This could also mark another investment from a large Japanese corporation within the Indian Financial Space, after MUFG's Japanese rival Sumitomo Mitsui Financial Group (SMBG) acquired close to 25% stake in Mumbai-based private lender Yes Bank Ltd. worth nearly $2 billion.\n\n
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\n India's financial sector has seen deals worth over $7 billion in 2025 so far with deals spanning across the banking and non-banking side. Yes Bank, RBL Bank, Sammaan Capital, Federal Bank, among others, have all seen large financial investments this year, and Shriram Finance is likely to add to that tally.\n
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\n In an interaction with CNBC-TV18 on November 26, Shriram Finance's Executive Vice Chairman Umesh Revankar had said that the company does not need capital as it has a CRAR of over 20%, but discussions are ongoing and that the company has been talking to various entities.\n\n
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\n A major investment here would bring in fresh capital and reduce the cost of funds for Shriram Finance, and also pave the way for credit rating upgrades.\n
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\n At the current price, shares of Shriram Finance are trading at a financial year 2027 estimated price-to-book value of 2.2 times, compared to its closest peer Cholamandalam, which trades at 4.1 times.\n
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\n Shares of Shriram Finance ended 0.2% higher on Friday at ₹866. The stock made a 52-week high intraday at ₹876.9 and is up nearly 50% so far in 2025.\n","readDurationInMinutes":"4","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["MUFG acquires 20% stake in Shriram Finance, a strategic partnership is formed.","MUFG invests over $4B, potentially largest 2025 Indian finance deal.","Deal to reduce Shriram Finance's funding costs; credit upgrades may follow."],"tags":["MUFG","ShriramFinance","StrategicPartnership","Investment","FinancialAcquisition","IndianFinancialSector","MitsubishiUFJFinancialGroup","NonBankLender","UmeshRevankar","SumitomoMitsuiFinancialGroup","SMBG","YesBank","RBLBank","SammaanCapital","FederalBank","India","FinancialDeals","CNBCTV18"],"consent":true,"redirectionEnabled":false}

MUFG to acquire 20% stake in Shriram Finance for ₹39,620 crore, to nominate two directors

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