Shriram Finance has officially responded to market speculation surrounding a potential major investment deal with MUFG (Mitsubishi UFJ Financial Group). The company has clarified its position regarding rumors of a $5 billion investment for a 20% stake, providing transparency to investors and stakeholders.

Current Status of MUFG Investment Rumors

The financial services company has categorically stated that no formal agreement currently exists with MUFG for the rumored $5 billion investment. This clarification addresses widespread market speculation that had been circulating regarding the potential deal structure and timeline.

Upcoming Board Meeting and Fundraising Discussion

Shriram Finance has scheduled a board meeting for December 19, 2025, specifically to discuss fundraising strategies and potential investment opportunities. This meeting will provide the company's leadership with an opportunity to evaluate various funding options and strategic partnerships.

Key Meeting Parameters

Market Implications and Transparency

The company's proactive approach in addressing these rumors demonstrates its commitment to maintaining transparency with investors and regulatory compliance. By clarifying the current status of negotiations and providing a timeline for formal discussions, Shriram Finance has taken steps to prevent market speculation from affecting its stock performance.

The scheduled board meeting will likely provide more concrete information about the company's fundraising plans and any potential strategic partnerships that may be under consideration. Investors and market participants will be closely monitoring the outcomes of this meeting for further developments regarding the company's growth and expansion strategies.

Shriram Finance Limited has received a penalty order from Uttar Pradesh tax authorities related to GST violations by its erstwhile subsidiary. The company informed stock exchanges about the regulatory development on December 17, 2025, in compliance with listing obligations.

GST Penalty Details

The Office of the Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh, issued the order dated December 16, 2025, imposing penalties under Section 73 of the Central Goods and Service Tax Act, 2017, read with the Integrated Goods and Services Tax Act, 2017.

The penalties relate to show cause cum demand notices against erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance effective April 1, 2022.

Nature of Violations

The GST demand has arisen on account of multiple contraventions identified by the tax authorities:

• Short payment of GST due to difference in applicable tax rate on scrap sale
• Non-payment of GST under reverse charge on incentives paid to recovery employees
• Availment of ineligible Input Tax Credit (ITC) under the provisions of Section 17 of the GST laws
• ITC booked in FY2020-21 but claimed in FY2021-22
• Non-submission of supporting/sample invoices corresponding to inward supplies as disclosed in Table 8A of GSTR-9
• GST demand on payments made to individual Direct Selling Agents (DSAs) on which tax was not discharged under the Reverse Charge Mechanism

Company's Response and Impact Assessment

Shriram Finance has stated that there are no material impacts on the company's financial, operational, or other activities. However, based on the quantum of the amount involved and out of commercial prudence, the company is awaiting an opinion from its tax consultant against the Uttar Pradesh state demand order.

The company has fulfilled its regulatory disclosure obligations by informing BSE Limited and National Stock Exchange of India Limited about the penalty order in accordance with Regulation 30 of the SEBI Listing Regulations.