Shriram Finance gets shareholders' nod for MUFG deal-linked proposals

India's Shriram Finance said on Wednesday its ⁠shareholders have approved three proposals related to the non-bank lender's deal with Japan's MUFG.

Under the deal signed ‌last ‌month, MUFG, one of Japan's largest lenders, will acquire ‌a 20% stake in Shriram Finance for $4.4 billion, marking the largest cross-border investment in India's financial sector.

Earlier in the day, Reuters reported the ​approval for the proposals, ​citing two sources with direct knowledge of ‌the matter.


The ‍proposals included the issuance of ‍shares to MUFG, which received 98.5% shareholder ‌approval. A resolution allowing MUFG to nominate directors to Shriram Finance's board was approved with 99.5% of votes, while a one-time payment of $200 million by MUFG to Shriram Finance's ownership trust ‍received 91.9% approval.

MUFG has been operating in India for more than 130 ‍years and ⁠expanded its ⁠presence in recent years. In 2022, it invested $565 million in digital lender DMI Finance, becoming its second-largest shareholder with a 20% stake.