Shriram Finance calls press meet on December 22 amid reports of MUFG acquiring minority stake
Shriram Finance Ltd, a leading non-banking finance company (NBFC) headquartered in Chennai, will hold a press conference on Monday, December 22, to share strategic updates and outline future business plans.
The announcement was made via an invitation seen by Mint, which stated the date, location and purpose of the press conference.
The announcement comes amid reports that Japan’s Mitsubishi UFJ Financial Group (MUFG) plans to acquire a 20% stake in the lender; This underlines the growing international interest in India’s retail finance sector.
What do we know about the deal?
The deal is expected to include an investment of approximately $4.5 billion to $5 billion for a 20% stake. Mint As previously reported, the investment could be as high as $5 billion and the overall value of the company could be between $22 and $25 billion.
The fundraise, which if realized could be among the largest cross-border deals involving India this year, is expected to be primarily a new share issue, a person familiar with the matter said. Mint.
The company’s board of directors is expected to meet on Friday to discuss the exact structure of the deal.
Shriram’s shareholding model
Shriram Finance is the second largest non-banking finance company in the country. It had assets under management (AUM) of approx. ₹2.81 trillion as of September, according to its website, and has more than 3,000 branches across the country.
The company is largely owned by promoters who hold 25.39% stake through group holding company Shriram Capital, which owns 17.85% stake. The remaining shares are held by public and institutional investors, including the Government of Singapore, which holds a 5.41 percent stake, and the Monetary Authority of Singapore, which holds a 1.2 percent stake.
According to various reports, Shriram Capital is owned by Shriram Ownership Trust and South Africa’s Sanlam and also holds shares in the group’s insurance joint venture with Sanlam.
