Japanese financial giant Mitsubishi UFJ Financial Group (MUFG) is poised to acquire a 20% stake in Shriram Finance Limited through a fresh capital infusion, with the announcement expected on December 19, according to sources. The deal is likely to be priced around Rs 880 per share, close to the current market rate, valuing the transaction between $3.5 billion and $4 billion.
The investment would place Shriram Finance near its current market capitalization of roughly $10 billion. Sources indicate that MUFG’s stake will be acquired via a combination of preferential allotment and warrants, with any open offer obligations dependent on its eventual shareholding. The Japanese lender is expected to secure at least two board seats through nominee directors and may receive a first right of refusal in future capital raises, enabling a gradual increase of its stake up to 51%.
The deal highlights renewed investor interest in Shriram Finance following Piramal’s exit in 2023 and is projected to surpass Emirates NBD’s investment in RBL Bank and SMBC’s stake in Yes Bank, making it the largest financial services transaction of 2025. The investment coincides with a management transition, with Parag Sharma taking over as MD & CFO, while Subhashri Shriram is expected to join the board. Shriram Finance shares have surged 38% in three months and are up 46% year-to-date.
