Shriram Finance has achieved overwhelming shareholder support for its strategic partnership with MUFG, with 98.50% of shareholders approving the plan to issue shares to Japan's Mitsubishi UFJ Financial Group, while 91.90% supported MUFG's one-time $200.00 million payment to the Shriram Ownership Trust.

Shareholder Voting Results

The financial services company received exceptional shareholder backing across both key components of the MUFG transaction. The voting results demonstrate strong confidence from the shareholder base in the strategic value of the partnership with Japan's leading financial institution.

Strategic Partnership Advancement

The overwhelming approval rates of 98.50% for share issuance and 91.90% for the trust payment structure reflect strong shareholder confidence in the MUFG partnership. This substantial backing enables both the equity participation component and the financial commitment from Japan's Mitsubishi UFJ Financial Group to proceed as planned.

Transaction Structure Implementation

With such decisive shareholder support secured, the dual-component transaction structure can now advance through remaining procedural requirements. The approved framework encompasses both MUFG's equity participation through share issuance and the substantial $200.00 million payment to the Shriram Ownership Trust.

The strong voting margins provide clear validation of the strategic partnership's value proposition and position the collaboration for successful implementation, subject to any outstanding regulatory approvals.

Shriram Finance Limited has received a fresh credit rating from CRISIL Ratings Limited for its fixed deposit programme. The rating agency assigned 'Crisil AA+/Watch Positive' rating to the company's ₹80,000 crore fixed deposit programme on January 14, 2026, as communicated to stock exchanges under Regulation 30 of SEBI Listing Regulations.

Strategic Investment Drives Rating Action

The rating assignment comes following Shriram Finance's significant corporate development announced on December 19, 2025. The company's Board of Directors approved definitive agreements with MUFG Bank Ltd for an investment of ₹39,618 crore ($4.40 billion) through preferential issue of equity shares.

MUFG Bank, Japan's premier bank with global operations across 50 countries, will gain special rights including board representation. The proposed transaction is expected to be consummated in 2026, subject to various regulatory and statutory clearances.

Comprehensive Rating Coverage

CRISIL's rating action extends beyond the fixed deposit programme, covering multiple debt instruments and facilities:

The rating agency has placed most long-term ratings on 'Rating Watch with Positive Implications' while reaffirming short-term ratings at 'Crisil A1+'.

Strong Market Position and Financial Metrics

Shriram Finance maintains its position as India's second-largest retail NBFC and third-largest non-bank financier. The company's diversified portfolio spans multiple segments:

The company's financial performance demonstrates robust fundamentals with assets under management of ₹2,81,309 crore as of September 30, 2025, compared to ₹2,63,190 crore as of March 31, 2025.

Capitalisation and Earnings Profile

Shriram Finance's capitalisation profile remains strong with healthy financial ratios:

The company reported net profit after tax of ₹4,474 crore during the first half of fiscal 2026, supported by stable credit costs of less than 2.00% and net interest margin of 8.80%.

Asset Quality Improvement

Shriram Finance has demonstrated consistent improvement in asset quality metrics. The Gross Stage 3 ratio remained stable at 4.60% as of September 30, 2025, compared to 5.50% as of March 31, 2024. The Net Stage 3 ratio improved to 2.50% from 2.70% during the same period.

Rating Outlook and Implications

CRISIL expects the MUFG Bank transaction to significantly benefit Shriram Finance's capitalisation profile, with networth expected to cross ₹1 lakh crore. The rating agency believes this will support the company's growth plans and improve its liability franchise through lower incremental borrowing costs. CRISIL indicated that upon resolution of the Rating Watch, the rating may change by up to one notch, suggesting potential for upgrade.