Pune: MUFG Bank has completed a landmark investment in Shriram Finance Limited (SFL), marking a significant milestone in India’s financial services sector.
The transaction reinforces MUFG Bank’s long-term commitment to the Indian market while strengthening its strategic presence through a major cross-border investment.
MUFG Bank, a consolidated subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), subscribed to 471,121,055 equity shares of SFL at an issue price of ₹840.93 per share.
The total investment amounts to approximately ₹396.18 billion. The allotment was approved by the Board of Directors of Shriram Finance Limited at its meeting held today and was executed through a preferential issue.
Following the completion of the transaction, MUFG Bank will hold a 20.0% equity stake in Shriram Finance on a fully diluted basis. The investment was finalized after securing all required regulatory and statutory approvals, including clearance from the Competition Commission of India.
This strategic move positions MUFG Bank at the forefront of one of the largest cross-border investments in India’s financial services sector.
The collaboration is expected to strengthen Shriram Finance’s capital base and enable it to leverage MUFG Bank’s global expertise, network, and financial capabilities to accelerate its long-term growth strategy.
The transaction further highlights MUFG Bank’s intent to deepen its engagement in India, particularly in high-growth segments such as MSME and retail lending.
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Umesh Revankar, Executive Vice Chairman, SFL, said: “This marks the successful culmination of a landmark transaction and the beginning of a long-term strategic collaboration with MUFG. We believe this collaboration will open new avenues for innovation, enhance access to diversified and cost-effective funding, and support the adoption of global best practices in risk management and governance.
The investment significantly strengthens our capital base and positions us to accelerate growth across key business segments. As we move forward, our focus remains on delivering consistent and responsible growth while creating long-term value for all stakeholders.”
Junichi Hanzawa, President and Group CEO, MUFG, added: “We are very pleased to commence our strategic collaboration with SFL. SFL is a leading financial institution in India with a strong business foundation and significant growth potential in the MSME and retail segments.
This investment represents an important step that underscores MUFG’s long-term commitment to the Indian market, and we believe it will contribute to India’s sustainable economic growth and the advancement of financial inclusion. Going forward, we will support SFL’s sustainable growth by leveraging MUFG’s customer network and experience cultivated through partner bank management.”
The completion of this transaction marks a pivotal development for MUFG Bank and Shriram Finance, setting the stage for a long-term strategic partnership focused on innovation, growth, and expanding financial access across India.
