Shriram Finance Limited has informed the Exchange regarding allotment of 471121055 Equity Shares of the Company to MUFG Bank Ltd. on a preferential basis by way of a private placement.
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Shriram Finance Limited has allotted 471,121,055 fully paid-up equity shares of Rs.2 face value each to MUFG Bank Ltd. (Japan) at Rs.840.93 per share, raising approximately Rs.39,617 crore. The allotment was approved by the Board on April 8, 2026, following an Investment Agreement dated December 19, 2025. Post-allotment, MUFG Bank holds a 20% stake in the company, making it a significant strategic investor. The company's paid-up equity capital increased from Rs.376.31 crore to Rs.470.54 crore. The new shares rank pari-passu with existing equity shares and are subject to regulatory lock-in provisions under SEBI ICDR Regulations.
MUFG Bank's 20% stake signals strong institutional confidence in Shriram Finance. The large capital infusion (~Rs.39,617 crore) strengthens the company's balance sheet and supports growth in its lending business. However, significant equity dilution may have a moderate impact on earnings per share for existing shareholders.