MUFG could invest more than ¥500 billion ($3.2 billion) to buy a stake of about 20 percent, said the people, who asked not to be identified because the deliberations are private. Talks are advanced and an agreement could be reached as soon as this week, the people said, adding that details such as the price and size of the stake could still change.
Shares of Shriram have risen nearly 50 percent this year, giving the Mumbai-based financial services company a market value of about $18 billion.
Negotiations are ongoing and could be delayed or even fail, the people added. A representative for MUFG declined to comment, while Shriram did not immediately respond to a request for comment.
Shriram operates businesses in urban and rural areas, focusing on loans for commercial vehicles, tractors and passenger cars. It also provides loans to small and medium-sized enterprises.
Japan’s largest banks are investing in local financial institutions in India, betting on the country’s growth. Sumitomo Mitsui Financial Group Inc. became the largest shareholder of Yes Bank Ltd earlier this year. through a historic deal. It is now trying to boost lending and recruit workers in the country, deploying almost $5 billion.
The Economic Times had reported MUFG’s interest in buying a stake in Shriram in October.
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Published on December 15, 2025
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