Shriram Finance Limited has provided updated disclosures regarding a share encumbrance involving the Shriram Ownership Trust. As part of a shareholders’ agreement executed on April 8, 2026, specific transfer restrictions have been placed on shares held by promoter entities in favour of MUFG Bank Ltd. These measures include lock-in periods and right of first offer conditions, reinforcing the strategic nature of the agreement between the involved parties.
Strategic Agreement Overview
Following a recent corporate filing, Shriram Finance Limited has clarified the details surrounding a new encumbrance arrangement. This filing relates to a shareholders’ agreement involving several entities, including Shriram Ownership Trust, Shriwell Trust, Sanlam Life Insurance Limited, Sanlam Emerging Markets (Mauritius) Limited, Shriram Value Services Limited, and MUFG Bank Ltd.
Details of Share Transfer Restrictions
The encumbrance involves 3,10,400 shares, representing approximately 0.01% of the total share capital of Shriram Finance. Under the terms agreed upon on April 8, 2026, the Shriram Ownership Trust is subject to specific constraints regarding the transfer of its holdings in the company. These conditions include:
- A 3-year lock-in period starting from April 8, 2026, during which transfers are restricted.
- Post-lock-in restrictions prohibiting transfers to identified ‘Restricted Persons’.
- A right of first offer granted to MUFG Bank Ltd regarding any future sale of shares after the lock-in period expires.
The agreement specifies that these conditions will cease to apply should the shareholding of MUFG Bank Ltd and its affiliates fall below 10% of the target company’s share capital on a fully diluted basis.
Source: BSE
