Shriram Finance Limited has formalised a significant shareholder agreement involving key promoter entities and MUFG Bank Ltd. This arrangement establishes specific transfer restrictions and encumbrance terms on shares held by the promoter group. The agreement, which took effect on April 8, 2026, sets a three-year lock-in period for share transfers, subject to defined conditions, and highlights the company’s commitment to strategic transparency regarding its capital structure and long-term investor arrangements.
Key Shareholder Agreement Details
Shriram Finance Limited, through the Shriram Ownership Trust, has disclosed a new set of contractual arrangements. These involve multiple promoter entities, including Shriram Capital Private Limited, Shriwell Trust, Sanlam Life Insurance Limited, Sanlam Emerging Markets (Mauritius) Limited, and Shriram Value Services Limited. The agreement, executed with MUFG Bank Ltd., imposes specific restrictions on the transfer of shares held by these entities.
Strategic Transfer Restrictions
Under the new terms, effective April 8, 2026, the identified promoter entities have agreed to a three-year lock-in period during which shares held in the company cannot be transferred, except for permitted transactions. Following this initial period, shares cannot be transferred to any person designated as a ‘Restricted Person’ under the agreement. Furthermore, any sale of shares after the lock-in expiry will be subject to a right of first offer available to MUFG Bank Ltd.
Encumbrance and Regulatory Compliance
The disclosure confirms that these restrictions constitute an encumbrance on the shares held by the promoter group. These provisions are designed to remain in effect unless the shareholding of MUFG Bank Ltd. and its affiliates drops below 10% of the company’s total share capital on a fully diluted basis. This disclosure ensures that shareholders and market participants are fully apprised of the long-term governance and transfer protocols currently in place for the company’s promoter holdings.
Source: BSE
