Shriram Finance Limited has successfully completed a preferential equity allotment to MUFG Bank Ltd. The company issued 47,11,21,055 equity shares at a price of Rs. 840.93 per share. This strategic move, valued at approximately Rs. 39,617.98 crore, results in MUFG Bank holding a 20% stake in the company on a fully diluted basis, marking a significant milestone in the partnership between the two entities.
Completion of Preferential Equity Issue
On April 8, 2026, the Board of Directors of Shriram Finance Limited officially approved the allotment of 47,11,21,055 fully paid-up equity shares to MUFG Bank Ltd. This private placement was executed as part of an investment agreement finalized on December 19, 2025. Each share was issued at a face value of Rs. 2/-, with a premium of Rs. 838.93, bringing the total issue price to Rs. 840.93 per share.
Impact on Share Capital
This major capital infusion significantly alters the company’s equity structure. Following the allotment, the paid-up equity share capital has increased from Rs. 3,76,31,30,742 (comprising 1,88,15,65,371 shares) to Rs. 4,70,53,72,852 (comprising 2,35,26,86,426 shares). The newly issued shares are set to rank pari-passu in all respects with the existing equity shares of the company.
Strategic Ownership Shift
With this transaction, MUFG Bank Ltd. now holds a 20% stake in Shriram Finance on a fully diluted basis, including all employee stock options. This investment underscores a deepening collaboration and confidence in the company’s long-term growth trajectory. The newly allotted shares are subject to a lock-in period in accordance with the prevailing market regulations governing preferential issues.
Source: BSE
