Mitsubishi UFJ's Strategic Stake in Shriram Finance: A $4.4 Billion Milestone

Japan's Mitsubishi UFJ Financial Group is set to acquire a 20% stake in India's Shriram Finance for Rs 39,618 crore, enhancing Shriram's capital adequacy ratio to 31%. This marks the largest cross-border investment in India’s financial sector, potentially leading to rating upgrades and reduced borrowing costs.

Japan's Mitsubishi UFJ Financial Group is making a significant move in the Indian financial landscape by acquiring a 20% stake in Shriram Finance for approximately USD 4.4 billion. The investment will enhance Shriram's capital adequacy ratio to 31%, positioning it for potential financial gains and expansions.

The Capital to Risk-Weighted Assets Ratio of Shriram stood at 20.68% in September 2025. The investment aims to improve the company's credit ratings from AA+ to AAA, potentially lowering borrowing costs by 50-70 basis points over time. This strategic alliance with MUFG is viewed as a move to leverage Shriram's existing market strength.

MUFG's acquisition marks the largest cross-border investment in India's financial sector to date. The deal requires shareholder and regulatory approvals. MUFG plans to appoint two directors to Shriram Finance's board, aiming to influence and support the firm's continued growth in India's financial services space.