With its proposed Rs 39,618 crore ($4.4 billion) investment, Japan’s MUFGBank will acquire a minority stake of 20% in Shriram Finance (SFL), and board and management control of the company will ...
The deal leverages Shriram’s unique ownership structure, which allows for potential future management control, and its superior return on assets compared to traditional banks ....
Shriram Finance confirmed it will not apply for a banking license after MUFG's $4.4 billion investment for a 20% stake. The company prefers to remain an NBFC, focusing on retail lending opportunities without structural changes in management ....
ExecutiveVice Chairman Revankar said that India's fast-paced growth gives the NBFC an opportunity to carry out retail lending and with enough scope to expand with whatever it has built so far ... .
MUFGBank is India's second-largest retail NBFC by AUM and says the capital infusion would significantly strengthen its balance sheet and support its next phase of growth ....