Mitsubishi UFJ Monetary Group Inc. is nearing a deal to purchase a minority stake in Shriram Finance Ltd., in response to folks conversant in the matter, the most recent overseas financial institution in search of to construct a presence on the planet’s most populous nation.
MUFG could make investments greater than ¥500 billion ($3.2 billion) to purchase a stake of round 20 per cent, the folks stated, asking to not be recognized as a result of the deliberations are non-public. Talks are superior and an settlement could also be reached as quickly as this week, the folks stated, including that particulars akin to the value and stake dimension may nonetheless change.
Shriram’s shares have risen virtually 50 per cent this yr, giving the Mumbai-based monetary companies agency a market worth of roughly $18 billion.
Negotiations are ongoing and should face delays and even disintegrate, the folks added. A consultant for MUFG declined to remark, whereas Shriram didn’t instantly reply to a request in search of remark.
Shriram operates companies throughout city and rural areas, specializing in loans for business autos, tractors and passenger automobiles. It additionally lends to small and medium-sized enterprises.
Japan’s largest banks are investing in native monetary establishments in India, betting on the nation’s development. Sumitomo Mitsui Monetary Group Inc. grew to become the most important shareholder of Sure Financial institution Ltd. in a landmark deal earlier this yr. It’s now in search of to spice up lending and add employees within the nation, having deployed virtually $5 billion.
The Financial Instances had reported MUFG’s curiosity in shopping for a stake in Shriram in October.
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Revealed on December 15, 2025
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