On 19 December, Shriram Finance Ltd, the flagship company of the Shriram Group, entered into an agreement with MUFG Bank for the latter to invest Rs 39,618 crore for a 20 per cent stake, making it the largest foreign direct investment in a financial services company in India.
MUFG Bank is wholly owned and controlled by Mitsubishi UFJ Financial Group, Inc., which is a financial services and holding company incorporated in Tokyo, Japan. In India, it provides corporate banking loans; deposit accounts; remittances; trade finance; bank guarantees; and hedging, Competition Commission of India said in a statement.
Earlier, Shriram said MUFG informed that Reserve Bank of India has confirmed that the investor need not obtain prior approval for the proposed transaction.
The consummation of the Proposed Transaction is subject to the conditions precedent in the Investment Agreement dated 19 December 2025 executed between, among others, the Company and the Investor, Shriram Finance said in a stock exchange filing.
