Shriram Finance Denies Stake Sale Reports, Rejects MUFG Acquisition Talk

Shriram Finance Ltd. on Tuesday denied any possibility of a stake sale in the company, in what was a direct response to media claims suggesting a 20% equity purchase from MUFG.

“With a view to prevent any misinformation and ensure full transparency, we hereby in good faith wish to clarify that the Company is not aware of any such potential majority stake sale of equity shares of the Company by any shareholder(s)," the company said in an exchange filing.

The non-banking financial company was reacting to a media report that suggested Japan's MUFG was in advanced talks to acquire 20% stake in the company for Rs 23,2000 crore.

A potential deal would have made MUFG the largest foreign direct investor in an Indian NBFC. The report added that the investment was to be done through primary issuance of shares, with MUFG being open to a larger share over time.

However, Shriram Finance has categorically denied having knowledge of any discussions with any party regarding such a transation and emphasised that no shareholder had communicated to the company for the same.

"In this regard, the Company has clarified to the said mainstream media that this is a rumour/speculation and has categorically denied the knowledge about information of such stake sale to any party," the company said.

"We request you to take note of this clarification and disregard any misleading information that may have been circulated in the media," the statement added.

Promoters currently hold a 25.39% share in Shriram Finance, falling from 29.37% in September 2022.

The NBFC has a large foreign shareholding presence at 52.61% while domestic institutional shareholding stands at 16.32%.

The Government of Singapore has a 5.41% stake in the company, while the Monetary Authority of Singapore and New World Fund Inc are among some of the other key foreign investors.

Shares of Shriram Finance gained almost a percent to close at Rs 617 on Tuesday's trade.