Shriram Finance Ltd., a leading Indian non‑banking financial company, is in the spotlight as talks advance with Japan’s Mitsubishi UFJ Financial Group (MUFG) for a significant investment. The NBFC has scheduled a press conference on 22 December 2025 to update investors and the public on its strategic plans amid market speculation about the deal.
Reports suggest MUFG is considering acquiring a 20% stake in Shriram Finance through a capital infusion of around $4.45–5 billion, one of the largest foreign investments in India’s financial sector in recent years. This investment could value the company at $22–25 billion, signalling strong international confidence in India’s growing retail and consumer finance market.
The proposed deal is expected to boost Shriram Finance’s capital base, enabling it to expand its lending operations, strengthen its financial stability, and explore new growth avenues. Market watchers say the partnership could also help the NBFC deepen relationships with global financial institutions.
Ahead of the press conference, Shriram Finance’s board will meet on 19 December to consider the MUFG investment along with other fundraising options like rights issues or preferential share allotments. However, the company has emphasised that no binding agreement has been signed yet. Regulatory filings confirm that any material developments will be disclosed to the stock exchanges in line with SEBI norms.
Investor interest has surged in the company’s shares, reflecting optimism about the potential investment. Analysts see MUFG’s move as a major endorsement of Shriram Finance’s business model and India’s credit growth story.
While the final deal remains tentative, the upcoming board meeting and press conference are expected to provide clarity. The financial world is closely watching, as this investment could mark a milestone for foreign participation in India’s NBFC sector, combining growth potential with international expertise.
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