The board of Shriram Finance Ltd. has completed the allotment of 47.11 crore equity shares to Mitsubishi UFJ Financial Group (MUFG) Bank Ltd. at ₹840.93 per share, raising ₹39,618 crore. According to The Economic Times, the equity shares allotted to MUFG Bank will rank pari passu in all respects with the existing equity shares. The company announced this development through a regulatory filing, marking the completion of the largest cross-border investment in India's financial services sector. The transaction represents a significant milestone in the strategic partnership between the two financial institutions.
The allotment was approved by Shriram Finance's Board of Directors at their meeting held on Wednesday, April 8, 2026, as reported by The Economic Times. The investment has been undertaken after obtaining all requisite regulatory and statutory approvals, including approval from the Competition Commission of India. Earlier in February, Shriram Finance had received confirmation from the Reserve Bank of India (RBI) that Japan's MUFG Bank does not require prior approval for the proposed transaction. Shareholders had approved the deal on January 14, 2026, providing the necessary regulatory framework for the share allotment.
In December 2025, MUFG had announced the acquisition of a 20% stake in Shriram Finance for ₹39,620 crore. According to The Economic Times, upon completion of the allotment, MUFG Bank will hold a 20% equity stake in SFL on a fully diluted basis. As part of the transaction, MUFG and Shriram Finance have entered into a strategic partnership, under which MUFG will nominate two directors to the company's board. This partnership is designed to strengthen the financial services capabilities of both institutions in the Indian market and enable SFL to leverage MUFG's global expertise and capabilities to accelerate its long-term growth strategy.
Shares of Shriram Finance were trading 11.26% higher at ₹1,035.45 apiece during intraday trading on the NSE following the announcement, as reported by The Economic Times. The stock closed 9.94% higher at ₹1,023.20, with the company's market capitalisation standing at ₹1,92,860.45 crore. The stock had hit its 52-week high of ₹1,108 per share on February 26, 2026, while its 52-week low of ₹566.50 apiece was recorded on August 29, 2025. This positive market response reflects investor confidence in the strategic partnership and the significant capital infusion from MUFG.
Executive Vice Chairman Umesh Revankar emphasized that this collaboration will open new avenues for innovation, enhance access to diversified and cost-effective funding, and support adoption of global best practices in risk management and governance. According to The Economic Times, Revankar stated that the investment significantly strengthens their capital base and positions them to accelerate growth across key business segments. MUFG President and Group CEO Junichi Hanzawa noted that SFL is a leading financial institution in India with strong business foundation and significant growth potential in the MSME and retail segments. The completion of this transaction marks a significant milestone for both MUFG and SFL, strengthening their long-term strategic collaboration and reinforcing their shared commitment to driving sustainable growth and financial inclusion in India.
