Japan's largest financial group, Mitsubishi UFJ Financial Group (MUFG) is set to make a major investment in India's non-banking finance company, Shriram Finance Limited. The Japanese company will invest approximately ₹39,618 crore ($4.4 billion) to acquire a 20 per cent stake in Shriram Finance. This is being considered one of the largest transactions in the India-Japan financial corridor this year.
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Following this news, Shriram Finance's share price has surged. In Friday's trading session, the company's share price rose by nearly 5 per cent to ₹912.65. This is not only the highest in the past year but also the highest in the company's share price history. Over the past year, this stock has gained 54 per cent. In the last 6 months, it has grown by approximately 40 per cent.
Shriram Finance Limited will allot equity shares to Mitsubishi UFJ Financial Group through a preferential issue. Experts say this deal has reached new heights in the India-Japan financial services sector investment. This year, Mizuho has acquired a majority stake in the Indian financial company Avendus. Sumitomo Mitsui Banking Corporation has made substantial investments in Yes Bank.
It started its journey in 1979 as Shriram Transport Finance Company. Over nearly five decades, the company has undergone multiple structural changes. Three years ago, Shriram City Union Finance and Shriram Capital merged to form Shriram Finance. The company is currently India's second-largest non-banking finance company. As of September 2025, its assets under management amount to approximately ₹2.81 lakh crore. The company has more than 3,000 branches across the country.
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The company's growth has been remarkable in terms of financial results as well. In the 2025 financial year, Shriram Finance's total income increased to ₹41,859 crore. In the previous financial year, this figure was ₹34,997 crore. During the same period, net profit increased to ₹9,761 crore.
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