Japan’s MUFG Buys 20% Stake In Shriram Finance For ₹39,618 Crore

By Kotak News Desk
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09 Apr 2026 at 8:08 AM IST
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Market News
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Summary

In the largest cross-border financial deal in India, Japan's MUFG has acquired a 20% stake in Shriram Finance for an amount of ₹39,618 crore through preferential allotment.

Mitsubishi UFJ Financial Group (MUFG) from Japan has bought a 20% stake in Shriram Finance for ₹39,618 crore, making it one of the biggest cross-border deals in India’s financial sector. The deal was done through a preferential allotment of 47.11 crore shares at ₹840.93 each, giving MUFG a strong minority stake.

The news was well-received by investors. After the deal was announced on 8 April 2026, Shriram Finance’s share price rocketed almost 10% in a single day to close at ₹1,023.20.

Why This Deal Matters

This deal is not just about raising money. It’s expected to be a long-term partnership between Mitsubishi UFJ Financial Group and Shriram Finance.

MUFG operates in more than 40 markets with around 2,000 locations globally. It has been looking to expand its presence in India for a while. With its strong reach in rural and semi-urban areas, Shriram Finance serves its purpose well.

Shriram Finance itself is a large player, with over 3,200 branches and assets under management of more than ₹2.9 trillion. It maintains a solid position in commercial vehicle financing, with a focus on MSMEs and retail borrowers.

For Shriram Finance, this investment will help build its capital base, enabling it to accelerate the expansion of its loan book.

Besides, the company can reduce independent borrowing costs in the longer run with the help of global funding, and its credit rating may be upgraded, boosting overall investor confidence.

Also Read - Pre-Market 9 April 2026: What To Expect After Nifty Surges To 23,997 Amid Global Rally

Key Numbers Of The Deal

Investment amount: ₹39,618 crore ($4.3–4.4 billion)
Stake acquired: 20% (fully diluted basis)
Shares allotted: 47.11 crore equity shares
Issue price: ₹840.93 per share

This makes it one of the largest foreign direct investments (FDI) ever in India’s BFSI sector. All important regulatory approvals for the deal have been received, including clearance from the Competition Commission of India.

Sources:

NDTV Profit

Business Standard

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.

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