There are widespread rumors in media that Mitsubishi UFG Financial Group (MUFG) is looking to acquire 20% stake in Shriram Finance (SFL) for $2.6bn. As per the speculations –
- Stake would be acquired through fresh issue
- MUFG would be open to gradually increase stake and hence also possibility of open offer at some stage
The deal if were to happen would be the largest foreign investment into an Indian NBFC.
Promoters currently own 25.4% of SFL, institutions 68.9% and balance 5.6% public.
The Company has categorically denied that they are aware about any related development.