MUFG to Buy 20% of Shriram Finance in $4B Deal, Shares Expected to Rerate

• Mitsubishi UFJ Financial Group (MUFG) to acquire a 20% stake in Shriram Finance for $3.5-4 billion.
• The deal, priced at Rs 880 per share, is expected to be announced on December 19, using preferential allotment and warrants.
• MUFG will gain at least two board seats and First Right of Refusal (RoFR) to increase its stake up to 51% in the future.
• This is anticipated to be the largest financial services deal of 2025, following Piramal's exit from Shriram Finance.
• Shriram Finance shares have surged 46% in 2025, outperforming the BSE Sensex significantly.

Why It Matters: MUFG's significant investment in Shriram Finance signals major growth and potential re-rating for shares.