CCI clears MUFG’s ₹39,618 crore Shriram Finance deal, largest FDI in financial sector The Competition Commission of India (CCI) has approved Mitsubishi UFJ Financial Group (MUFG) Bank’s ₹39,618 crore investment in Shriram Finance Ltd, removing the final regulatory obstacle for what is set to become the largest foreign direct investment in India’s non-banking financial company (NBFC) sector. The deal, which involves acquiring a 20 per cent stake in Shriram Finance, is expected to close by April 2026. This transaction marks a significant milestone for both parties, offering MUFG access to a vast rural network and strengthening Shriram Finance’s financial position. MUFG’s investment, valued at ₹39,618 crore ($4.4 billion), surpasses the previous record of ₹26,853 crore set by RBL Bank’s deal. The transaction is structured through the preferential allotment of 47.11 crore shares at ₹840.93 each, granting MUFG a 20 per cent stake in Shriram Finance on a fully diluted basis. The deal has already secured approvals from the Reserve Bank of India (RBI) and Shriram Finance’s shareholders, with the closing date contingent on meeting standard conditions. The investment is projected to significantly boost Shriram Finance’s Tier-1 capital adequacy ratio, raising it from approximately 20 per cent to over 35 per cent. This enhancement will strengthen the company’s balance sheet, reduce its cost of funds, and enable it to compete more effectively with major banks like HDFC Bank and ICICI Bank in segments such as MSME loans, gold finance, personal loans, and affordable housing. The improved capital base will also provide the company with greater flexibility to scale its operations and accelerate its transition from an asset-backed “truck financier” to a data-driven, cash-flow-focused NBFC.#reserve_bank_of_india #nbfc_sector #competition_commission_of_india #shriram_finance #mufg_bank
