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

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.

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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