Japan's Mitsubishi UFJ Financial Group (MUFG) will acquire a 20% stake in Shriram Finance Ltd for $4.4 billion, marking the largest cross-border investment ever in India's financial sector, the Indian... ...

MUMBAI: Mitsubishi UFJ Financial Group (MUFG) is set to invest ₹39,618 crore ($4.4 billion) for a 20% stake in Shriram Finance Ltd, marking one of the largest cross-border transactions this year and adding to the growing pipeline of deals in the India-Japan corridor.The investment will be made through a preferential issuance of equity shares, Shriram Finance (SFL) said in a filing with the stock exchanges on Friday.The fund infusion will enhance SFL’s capital adequacy, strengthen its balance sheet, and prov ...

Core Insights - Japan's MUFG is acquiring a 20% stake in Shriram Finance for $4.4 billion, representing the largest cross-border investment in India's financial sector [1] Company Summary - MUFG's investment in Shriram Finance highlights the growing interest of foreign investors in India's financial market [1] - Shriram Finance is a prominent non-bank lender in India, indicating its significant role in the country's financial landscape [1] Industry Summary - This investment marks a pivotal moment for cross-border investments in the Indian financial sector, potentially encouraging more foreign capital inflow [1] - The transaction underscores the increasing globalization of financial services and the strategic importance of emerging markets like India [1]

.Mitsubishi UFJ Financial Group is all set to pump in over $4.4 billion (around Rs 40,000 crore) to acquire an over 20% stake in Shriram Finance, with the deal likely to finalised on Friday. The transaction will be among the biggest in the financial services space.MUFG and Shriram Finance could not be reached for comment. On Tuesday, Shriram Finance informed stock exchanges that its board will meet Friday to consider raising funds through a rights issue, preferential allotment of shares, QIP or through othe ...

Group 1 - Mitsubishi UFJ Financial Group (MUFG) is set to invest over $4 billion for a roughly 20% stake in Shriram Finance [1] - The deal is expected to be closed on Friday [1]

Core Insights - Japanese companies are increasingly expanding their operations in India, making it a significant hub for dealmaking in Asia, especially in the financial services sector [1][3] Group 1: Recent Developments - Mizuho Financial Group Inc. is acquiring a controlling stake in KKR & Co.-backed Avendus Capital Pvt. Mitsubishi UFJ Financial Group Inc. is reportedly planning to invest over ¥500 billion ($3.2 billion) for approximately 20% of Shriram Finance Ltd. [2] - Sumitomo Mitsui Financial Group Inc. has become the largest shareholder of Yes Bank Ltd. [2] Group 2: Market Trends - The total volume of deals targeting Indian companies, including mergers and acquisitions, has increased by 15% this year, reaching nearly $90 billion. Although Japanese buyers currently represent a small portion of this market, their presence is growing [4] - Japanese mid-market companies are expected to actively seek M&A opportunities in sectors such as mobility, renewables, sustainability, and infrastructure by 2026 [5] Group 3: Strategic Insights - Japan's corporate sector is prioritizing growth outside its domestic market, with India being a top destination for investment and partnerships [3][5] - Despite the growth potential in India, some sectors may offer better value in public markets compared to private transactions, posing challenges for M&A activities [6] - The dialogue and collaboration between Japanese and Indian companies are seen as positive, indicating a strong momentum for future deals [6]

India’s trade deficit narrowed sharply to $24.53 billion in November 2025 from $41.68 billion in October, as imports of gold, oil, and coal declined. Overall exports, including goods and services, rose to $73.99 billion, while imports slipped to $80.63 billion, cutting the overall deficit to $6.64 billion. Merchandise exports hit a 10-year high of $38.13 billion, led by strong growth in engineering, electronics, and gems & jewellery. The services sector also grew to $35.86 billion, showing continued strengt ...

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Core Viewpoint - Mitsubishi UFJ Financial Group Inc. is close to acquiring a minority stake in Shriram Finance Ltd., reflecting the interest of foreign banks in expanding their presence in India, the world's most populous country [1][4]. Investment Details - MUFG may invest over ¥500 billion ($3.2 billion) for approximately a 20% stake in Shriram Finance, with negotiations advanced and a potential agreement expected soon [2]. - Shriram Finance's shares have surged nearly 50% this year, resulting in a market valuation of about $18 billion [2]. Business Operations - Shriram Finance operates in both urban and rural sectors, primarily focusing on loans for commercial vehicles, tractors, and passenger cars, as well as lending to small and medium-sized enterprises [3]. Market Context - Japanese banks are increasingly investing in local financial institutions in India, with Sumitomo Mitsui Financial Group Inc. recently becoming the largest shareholder of Yes Bank Ltd. and planning to enhance lending and staffing in the country [4].

Core Viewpoint - Mitsubishi UFJ Financial Group is in advanced negotiations to acquire a 20% stake in Shriram Finance, an Indian non-bank financial institution, for over 500 billion yen, equivalent to approximately $3.22 billion [1] Group 1 - The acquisition represents a significant investment by Mitsubishi UFJ in the Indian financial sector, highlighting the growing interest of Japanese financial institutions in India [1] - Shriram Finance is positioned as a key player in the Indian non-banking financial space, which has been experiencing robust growth [1] - The deal underscores the trend of cross-border investments in emerging markets, particularly in the financial services industry [1]