Shriram Finance has approved a fund raise of ₹3,96,17,98,28,781.15 from MUFG Bank Ltd. MUFG will acquire a 20% minority stake in Shriram Finance through the issuance of 47,11,21,055 fully paid-up equity shares at a price of ₹840.93 per share. The transaction is subject to shareholder and regulatory approvals.
Key Investment Highlights
Shriram Finance has greenlit a substantial investment from MUFG Bank Ltd., with the transaction structured as follows:
- Investor: MUFG Bank Ltd.
- Investment Amount: ₹3,96,17,98,28,781.15
- Stake Acquired: 20%
- Number of Shares: 47,11,21,055
- Price per Share: ₹840.93
Terms and Conditions
The preferential issue is contingent upon several key conditions:
- Shareholder approval
- Regulatory and governmental approvals
- Other conditions precedent agreed between the parties in the Investment Agreement
Special Rights Granted to Investor
Subject to shareholder approval, MUFG Bank will have certain minority protection rights, including the right to nominate up to 2 non-independent directors on the Board, and pre-emptive rights to subscribe to pro-rata shareholding. These rights are contingent on MUFG maintaining at least a 10% shareholding on a fully diluted basis.
Non-Compete Fee
As part of the agreement, a one-time, non-recurring non-compete and non-solicit fee of USD 200,000,000 will be paid to Shriram Ownership Trust, subject to shareholder approval.
Extraordinary General Meeting
An Extraordinary General Meeting (EGM) will be convened on January 14, 2026, to seek shareholder approval for the preferential issue, payment of the non-compete fee, and grant of special rights to the investor.
Shriram Capital Private Limited Restructuring
Shriram Capital Private Limited (SCPL) promoter entity, has recorded the intent to explore and evaluate certain restructuring options relating to the separation or reorganisation of the lending / credit business of SCPL from its other business interests.
Source: BSE
