MUFG Eyes Major Stake in Shriram Finance
Mitsubishi UFJ Financial Group is negotiating to buy a 20% stake in Shriram Finance for 232 billion rupees. The acquisition would be via a primary issuance without any secondary share sale. MUFG is open to increasing its stake in the future. Shriram Finance reported a profit increase.
Japan's Mitsubishi UFJ Financial Group is making a strategic move to acquire a significant share in India's Shriram Finance, as discussions advance towards securing a 20% stake, valued at 232 billion rupees. The Economic Times highlighted this pivotal development on Wednesday, citing informed sources.
While Mitsubishi UFJ (MUFG) declined to confirm the report, Shriram Finance remained unavailable for immediate comment. The acquisition, should it proceed, would be actioned through a preferential allotment, with no secondary shares involved. Both companies have reportedly entered an exclusivity agreement for these negotiations.
MUFG is also considering a larger stake, potentially seeking a controlling interest in the future. Meanwhile, Shriram Finance has shown financial growth with an 8.8% annual increase in standalone profit, reaching 21.56 billion rupees in the last quarter, slightly under market forecasts.
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