Shriram Finance , a prominent non-banking financial company (NBFC), has categorically denied media reports suggesting that Japan's Mitsubishi UFJ Financial Group (MUFG) was in advanced talks to acquire a 20% stake in the company for Rs 23,200 crore. The company's shares closed nearly 1% higher at Rs 617.00 on the day of the announcement.

Official Clarification

In an official statement to the stock exchanges, Shriram Finance stated, "The Company has clarified to the mainstream media that this is a rumour / speculation and has categorically denied the knowledge about information of such stake sale to any party." The company emphasized that it has no knowledge of any potential majority stake sale by shareholders and has not been approached by any shareholder expressing intention to sell their shares.

Reported Deal Details

The media reports, now refuted by Shriram Finance, had suggested that:

• MUFG was in advanced talks to acquire a 20% stake in Shriram Finance.
• The deal was reportedly worth Rs 23,200 crore.
• It would have been executed through primary share issuance.
• If true, it would have made MUFG the largest foreign investor in an Indian NBFC.

Current Shareholding Structure

Shriram Finance's current shareholding pattern, as per the latest available data, is as follows:

Company's Stance

Shriram Finance has urged investors to disregard any misleading information circulated in the media. The company stated, "We request you to take note of this clarification and disregard any misleading information that may have been circulated in the media."

The NBFC's prompt denial and clarification to the stock exchanges demonstrate its commitment to transparency and accurate information dissemination to its stakeholders.

Shriram Finance , a prominent player in the Indian financial services sector, has made a significant move to strengthen its overseas operations. The company has invested ₹300 crore in its wholly-owned subsidiary, Shriram Overseas Investments Limited (Shriram Overseas), in a strategic effort to bolster the subsidiary's capital base.

Capital Infusion Details

According to a regulatory filing, Shriram Finance has subscribed to 1,90,25,000 equity shares of Shriram Overseas. The shares, with a face value of ₹10 each, were acquired at a premium of ₹147.69 per share, totaling an investment of ₹300,00,52,250.

Strategic Objectives

The capital infusion is part of a larger plan approved by Shriram Finance's Board of Directors on May 6, 2025. The board had given the green light for infusing up to ₹500 crore into Shriram Overseas in a phased manner. This latest investment of ₹300 crore represents a significant step in executing that plan.

About Shriram Overseas

Shriram Overseas Investments Limited, formerly known as Shriram Overseas Investments Private Limited, is engaged in investment activities. The company's primary business involves acquiring, holding, underwriting, and subscribing to shares, bonds, stocks, securities, and debenture stocks issued by companies operating in India and abroad.

Financial Performance

The regulatory filing also revealed Shriram Overseas' recent financial performance:

Regulatory Compliance

The transaction, while falling under the category of a related party transaction, is exempt from certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as it is between a holding company and its wholly-owned subsidiary. Shriram Finance has affirmed that the capital infusion was conducted at arm's length, based on a valuation report.

This strategic move by Shriram Finance underscores the company's commitment to strengthening its overseas investment arm and potentially expanding its global footprint. As the financial services landscape continues to evolve, such capital reinforcements could play a crucial role in positioning Shriram Finance for future growth and opportunities in the international market.