Shriram Finance Shares In Focus On Monday As Japanese MUFG Bank Buys 20% Stake For Rs 39,618 Crore

Shriram Finance Share Price: Shriram Finance Limited shares will react on Monday, December 22, after MUFG Bank has acquired 20 per cent stake with an investment of Rs 39,618 crore (USD 4.4 billion) on Friday.

MUFG Bank has become the second Japanese lender which have made heavy investment in India’s financial sector in 2025, followed by Sumitomo Mitsui Banking Corporation, a unit of Sumitomo Mitsui Financial Group. SMBC bought a 24.2% stake in Indian lender Yes Bank starting with a 20% stake for $1.6 billion in May.

“The Board has approved raising of funds of INR 3,96,17,98,28,781.15 (Indian Rupees Thirty Nine Thousand Six Hundred and Seventeen Crores Ninety Eight Lakhs Twenty Eight Thousand Seven Hundred and Eighty One and Paise Fifteen only)

from MUFG Bank Ltd. (“Investor”) a company incorporated under the laws of Japan, by way of issuance of 47,11,21,055 (Forty Seven Crores Eleven Lakhs Twenty One Thousand and Fifty Five) fully paid-up equity shares of face value INR 2/- (Indian Rupees Two only) each of the Company (“Subscription Shares”) at a price of INR 840.93 (Indian Rupees Eight Hundred and Forty and Paise Ninety Three) per Subscription Share, through preferential issue on a private placement basis (“Preferential Issue”),” the company said in the filing.

MUFG Bank’s transaction marks a landmark moment in the Indian financial services industry as it is being the largest FDI in a financial services company in India.

The stake purchase will help SFL to enhance capital adequacy, strengthen its balance sheet, and provide longterm growth capital.

“This collaboration 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,” it added.

Shares of Shriram Finance ended 4 per cent higher to Rs 905 apiece last week, compared the previous day close at Rs 869.45 apiece.

India allows up to 100% foreign ownership in non-banking finance companies, unlike banks where foreign institutional stakes are capped at 15% per entity unless exempted by the RBI. Earlier this month, the RBI clarified that banks can hold equity in NBFCs, easing a regulatory hurdle for MUFG’s investment in Shriram Finance, according to Reuters report.