MUFG to Invest $3.5-4 Billion for 20% Stake in Shriram Finance

• Japanese financial giant MUFG plans to acquire a 20% stake in Shriram Finance through a $3.5-4 billion fresh capital infusion.
• The deal, valuing Shriram Finance at approximately $10 billion, is expected to be one of the largest NBFC transactions of 2025.
• The primary issuance of shares will not trigger an open offer, and MUFG will likely secure at least two board seats.
• Shriram Finance's board is expected to meet on Friday, December 19, to consider the proposal.
• MUFG will have the first right of refusal for future capital raises, potentially increasing its stake to 51% over time.

Why It Matters: MUFG's significant investment marks a major deal for Shriram Finance, boosting its capital and market confidence.