MUFG is set to invest over $4 billion for a 20% stake in Shriram Finance, marking one of India’s largest NBFC deals. The move underscores MUFG’s expansion strategy in India’s booming credit market. Shriram Finance shares surged to a 52-week high amid optimism over the potential investment.
Japan’s largest financial institution, Mitsubishi UFJ Financial Group (MUFG), is reportedly in advanced talks to invest over $4 billion (approx. ¥500 billion) for a 20% stake in India’s Shriram Finance Ltd, according to sources familiar with the matter. This would mark one of the largest NBFC deals of 2025, underscoring global investor confidence in India’s fast-growing financial services sector.
Key Highlights
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Major Investment: MUFG is expected to infuse between $3.5–4 billion, acquiring a significant minority stake in Shriram Finance.
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Strategic Expansion: The deal highlights MUFG’s ambition to strengthen its presence in India, the world’s most populous country and a rapidly expanding credit market.
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Shriram Finance Growth: The company, valued at nearly $18 billion, has seen its shares rise almost 50% this year, driven by strong demand for loans across commercial vehicles, tractors, and passenger cars.
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Board Discussions: Shriram Finance’s board is set to meet this week to consider fundraising options, with MUFG’s investment likely on the agenda.
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Market Impact: Shares of Shriram Finance recently touched a 52-week high, reflecting investor optimism around the potential deal.
Why It Matters
This investment would not only provide Shriram Finance with fresh capital but also deepen India-Japan financial ties, positioning MUFG as a key player in India’s NBFC sector.
Sources: Moneycontrol, BloombergThe Edge Singapore+1, Financial Express