MUFG in advanced talks to buy 20% stake in Shriram Finance for about $4 billion

Japanese banking major Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire around 20% stake in Shriram Finance Ltd

, India’s largest retail non-banking financial company (NBFC), according to a Moneycontrol report citing sources familiar with the matter.

The potential deal, estimated to be valued at about $4 billion, would mark one of the largest foreign investments in India’s NBFC sector. MUFG is expected to secure board representation as part of the agreement, the report said.

Shriram Finance, formed after the merger of Shriram Transport Finance and Shriram City Union Finance in 2022, has a strong presence in vehicle loans and small business financing. The company is backed by marquee investors such as TPG Capital and Premji Invest.

The transaction, if concluded, will further strengthen MUFG’s India footprint. The Japanese lender already has exposure to Indian financial services through MUFG Bank and has been scaling up its lending and investment operations in the country.

Both MUFG and Shriram Finance have not commented publicly on the development.