MUFG Bank Buys 20% Stake in Shriram Finance for Rs 39,618 Cr; Shares to React Monday

• MUFG Bank acquired a 20% stake in Shriram Finance for Rs 39,618 crore (USD 4.4 billion).
• This transaction marks the largest FDI in an Indian financial services company.
• The investment will enhance Shriram Finance's capital adequacy, strengthen its balance sheet, and provide long-term growth capital.
• It is the second major Japanese investment in India's financial sector in 2025, following Sumitomo Mitsui Banking Corporation's stake in Yes Bank.
• Shriram Finance shares ended 4% higher last week and are expected to react on Monday, December 22.

Why It Matters: MUFG Bank's Rs 39,618 Cr investment in Shriram Finance marks India's largest financial FDI.