MUFG to Invest Over $4 Billion for 20% Stake in Shriram Finance
Japan’s Mitsubishi UFJ Financial Group (MUFG) is set to invest more than $4 billion to acquire a roughly 20% stake in Indian non-bank financial company Shriram Finance, according to two sources familiar with the matter. The deal, expected to be closed on Friday, marks one of MUFG’s largest investments in India. While MUFG declined to comment, Shriram Finance did not respond to queries. Sources indicated the investment could be as high as $4.3 billion, or about ₹390 billion, exceeding earlier estimates reported by Bloomberg.
The move underscores the growing push by Japanese financial institutions to expand overseas as they seek higher growth beyond Japan’s ageing and shrinking domestic market. India has emerged as a key destination due to its fast-growing economy and expanding financial services sector. Earlier this year, Japan’s Sumitomo Mitsui Financial Group acquired a 24.2% stake in Yes Bank, while Mizuho Securities recently announced plans to buy a majority stake in Indian investment bank Avendus from KKR.
Shriram Finance, one of India’s largest retail non-banking financial companies, provides credit for commercial vehicles, passenger cars, two-wheelers, and personal loans. As of the end of September, the company reported assets under management of ₹2.8 trillion ($31 billion). In a late Tuesday filing, Shriram Finance said its board would meet on Friday to consider a proposal to raise funds, without disclosing further details.
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