Shriram Finance Ltd, a leading non-banking finance company (NBFC) headquartered in Chennai, will hold a press conference on Monday, 22 December, to share strategic updates and outline its future business plans.
The announcement was made through an invitation seen by Mint, which outlined the date, venue and purpose of the press meet.
The announcement comes amid reports that Japan’s Mitsubishi UFJ Financial Group (MUFG) is planning to acquire a 20% stake in the lender, highlighting growing international interest in India’s retail finance sector.
What do we know about the deal?
The deal is expected to involve an investment of approximately $4.5 billion to $5 billion for a 20% stake, Mint reported earlier, adding that the investment could be as high as $5 billion, valuing the overall company at $22 billion to $ 25 billion.
The fundraise, which could rank among the largest cross-border deals involving India this year if it goes through, is expected to be primarily a fresh issuance of shares, a person familiar with the matter told Mint.
The board of the company is expected to meet on Friday to discuss the exact structure of the deal.
Shriram's shareholding pattern
Shriram Finance is the country's second-largest non-banking finance company. It had assets under management (AUM) of approximately ₹2.81 trillion as of September and operates over 3,000 branches across the country, according to its website.
The company is primarily owned by its promoters, who hold a 25.39% stake, largely through group holding company Shriram Capital, which owns 17.85%. The remaining shares are held by public and institutional investors, including the Government of Singapore with a 5.41% stake and the Monetary Authority of Singapore, which holds 1.2%.
Shriram Capital is owned by Shriram Ownership Trust and South Africa’s Sanlam, and also owns shares in the group’s insurance joint venture with Sanlam, according to various reports.
