Shriram Finance Ltd confirmed that, as of now, no binding agreement or arrangement has been executed with any investor. This clarification comes amid reports of Japan’s MUFG negotiating a $3–5 billion investment for a 20% stake. The company emphasized transparency while preparing for a board meeting to discuss fund-raising options.
Shriram Finance Ltd (SHMF.NS) has issued a formal clarification stating that no binding agreement, arrangement, or understanding has been executed with any investor as of date. The announcement follows intense market speculation that Japan’s Mitsubishi UFJ Financial Group (MUFG) is in advanced talks to acquire a 20% stake in the company, potentially valued at $3–5 billion.
The company’s shares rose nearly 2% earlier this week on reports of MUFG’s interest, but Shriram Finance has reiterated that discussions remain exploratory. A board meeting scheduled for December 19, 2025 will consider fund-raising options, including rights issues, preferential allotments, or qualified institutional placements.
Key Highlights
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Clarification: No binding agreement signed with any investor as of December 18, 2025.
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Market speculation: Reports suggest MUFG may invest $3–5 billion for a 20% stake.
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Share reaction: Stock rose ~2% to ₹870.60 amid speculation.
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Board meeting: Scheduled for December 19 to discuss fund-raising avenues.
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Strategic intent: Company exploring opportunities to enhance shareholder value and strengthen capital base.
Shriram Finance’s statement underscores its commitment to regulatory transparency while keeping strategic options open in a rapidly evolving financial services landscape.
Sources: Moneycontrol, InvestyWise, Business Standard, Shriram Finance Investor Updates