Mitsubishi UFG Financial Group sets sights on 20% in Shriram Finance for $2.6 bn; potentially largest FDI in Indian NBFC sector

Core Viewpoint - Mitsubishi UFJ Financial Group (MUFG) is in advanced discussions to acquire a 20% stake in Shriram Finance for ₹23,200 crore ($2.6 billion), which could represent the largest foreign direct investment (FDI) in an Indian non-banking financial company (NBFC) [1] Group 1: Investment Details - The investment will be made through a primary issuance, indicating MUFG's willingness to consider increasing its stake in the future [1] - Shriram Finance is recognized as India's second-largest NBFC, with assets under management (AUM) amounting to ₹2.72 lakh crore [1] Group 2: Market Position - Shriram Finance has a robust presence in retail lending, which is a significant aspect of its business model [1]