Japan's MUFG to Acquire 20% Stake in Shriram Finance; Shares Soar 4%

• Japan's MUFG Bank will acquire a 20% stake in NBFC Shriram Finance Limited.
• Shriram Finance's board approved raising funds worth ₹3,96,17,98,28,781.15 from MUFG Bank by issuing 47,11,21,055 shares at ₹840.93 each.
• MUFG will nominate two directors to Shriram Finance's board, making it an equity method affiliate, pending regulatory approvals.
• Following the announcement, Shriram Finance shares surged up to 5%, closing with a 4% gain, and hit a new 52-week high.
• This investment contributes to over $11 billion in India's financial sector deals in 2025, reflecting increased Japanese investment in India.

Why It Matters: MUFG's major investment in Shriram Finance boosts shares and strengthens India-Japan financial ties.