The NBFC has sought shareholder approval for issuance of shares to MUFG through a preferential issue on a private placement basis, special rights granted to the investor in accordance with SEBI norms and a one-time, one-time and fixed amount to Shriram Ownership Trust, promoter of the company, for the non-compete and non-solicitation obligations.
“This preferential issue raises ₹39,618 crore at a premium of 18.7 per cent over 90-day VWAP, supported by dual appraiser reports, strengthening Shriram Finance’s capital adequacy amid NBFC’s scale-up. MUFG’s global expertise in risk/governance is aligned with CV/MSME/gold loan growth, enhancing access to finance and focus on sustainability are improved. The shareholding table shows controlled dilution (promoters from 25.39 percent to 20 percent), with FII/DII adjustments maintaining institutional stability,” Ingovern Research said in a note.
“The proceeds are focused on lending (50 percent) and debt reduction (38 percent) supporting expansion of assets under management while optimizing leverage. CRISIL monitoring ensures accountability; regulatory gates (RBI/CCI) provide safeguards. The proposal is in line with Shriram Finance’s post-demerger trajectory and enhances resilience and shareholder value. Given its alignment with capital needs, fair pricing, strong investor credentials and robust supervision, we encourage shareholders to vote in favor of the resolution,” the report said.
Last month, Shriram Finance’s board approved entering into definitive agreements with MUFG Bank for an investment of ₹39,618 crore Shriram through a preferential issue of shares. This investment will result in MUFG Bank acquiring a 20 percent stake on a fully diluted basis.
Published on January 7, 2026
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