Shriram Finance Allots ₹3,961 Crore Equity Shares to MUFG Bank via Preferential Issue

Shriram Finance Limited has approved the allotment of equity shares to MUFG Bank Ltd. through a preferential issue, strengthening its capital base and strategic partnership. According to the company’s exchange filing dated April 8, 2026, the board approved the allotment of 47,11,21,055 equity shares at an issue price of ₹840.93 per share, aggregating to approximately ₹3,96,17,98,28,781.15 (₹3,961 crore). 

The issue price includes a premium of ₹838.93 per share over the face value of ₹2. This move aligns with the company’s earlier announcements and investment agreement with MUFG Bank.

MUFG Bank Acquires 20% Stake Post Issue

Post allotment, MUFG Bank Ltd. will hold a 20% stake in Shriram Finance on a fully diluted basis, marking a significant strategic investment. As per details outlined in the annexure, MUFG did not hold any equity stake prior to the issue, making this a fresh capital infusion into the company. 

The preferential issue was executed under SEBI’s ICDR Regulations, 2018, and involves a single investor. The shares allotted will rank pari-passu with existing equity shares and will be subject to regulatory lock-in provisions.

Capital Base Strengthened, Share Capital Expands

Following the allotment, Shriram Finance’s paid-up equity share capital increased from ₹3,76,31,30,742 to ₹4,70,53,72,852, reflecting a substantial expansion in its equity base. 

The company has already received in-principle approvals from both BSE and NSE, and listing approvals for the newly issued shares are expected in due course.

This capital raise is expected to support Shriram Finance’s growth plans, improve balance sheet strength, and deepen its collaboration with MUFG, a global financial major.

Read more: GAIL Share Price in Focus; Signs Long-Term LNG Carrier Charter Agreement with Alpha Gas.

Conclusion

Shriram Finance’s ₹3,961 crore preferential allotment to MUFG Bank marks a key milestone in its capital strategy and global partnership expansion. With MUFG acquiring a 20% stake, the transaction not only enhances the company’s financial flexibility but also signals long-term confidence from an international banking giant.

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