MUFG Bank Ltd, a consolidated subsidiary of Mitsubishi UFJ Financial Group Inc (MUFG), has made a strategic investment of ₹39,618 crore towards acquiring 20% equity stake in Shriram Finance Ltd (SFL), thus marking one of the largest cross-border investments in India’s financial services sector.
Strategic investment completed
MUFG Bank acquired 47.11 crore equity shares of SFL at an issue price of ₹840.93 per share, aggregating to approximately ₹39,618 crore. Post-transaction, MUFG Bank holds a 20% stake in SFL on a fully diluted basis.
The investment follows receipt of all requisite regulatory and statutory approvals, including clearance from the Competition Commission of India.
Strengthening India presence
The transaction significantly enhances MUFG’s footprint in India, while enabling SFL to leverage the Japanese lender’s global expertise and capabilities to accelerate its long-term growth strategy.
The deal marks a key milestone in the relationship between the two institutions, strengthening their strategic collaboration and reinforcing their shared commitment to sustainable growth and financial inclusion.
Leadership commentary
“This marks the successful culmination of a landmark transaction and the beginning of a long-term strategic collaboration with MUFG. We believe this collaboration will open new avenues for innovation, enhance access to diversified and cost-effective funding, and support the adoption of global best practices in risk management and governance,” said SFL Vice Chairman Umesh Revankar.
The investment significantly strengthens our capital base and positions us to accelerate growth across key business segments. As we move forward, our focus remains on delivering consistent and responsible growth while creating long-term value for all stakeholders,” Revankar said.
“SFL is a leading financial institution in India with a strong business foundation and significant growth potential in the MSME and retail segments.
This investment represents an important step that underscores MUFG’s long-term commitment to the Indian market, and we believe it will contribute to India’s sustainable economic growth and the advancement of financial inclusion. Going forward, we will support SFL’s sustainable growth by leveraging MUFG’s global customer franchise and capabilities,” MUFG President and Group CEO Junichi Hanzawa said.
Growth and capital boost
The investment is expected to significantly bolster SFL’s capital base, supporting expansion across key segments including MSME and retail lending, while strengthening governance and risk management frameworks through access to global best practices.