Proxy advisory firms including Ingovern, ISS Proxy Research and Glass Lewis have recommended shareholders of Shriram Finance to approve all three agenda items pertaining to Shriram Finance and MUFG Bank deal during the upcoming EGM scheduled between January 11-13.
The NBFC has sought shareholder approval on issuance of equity shares to MUFG by way of preferential issue on a private placement basis, special rights granted to the Investor in accordance with SEBI norms and one-time, non-recurring and fixed amount to Shriram Ownership Trust, promoter of the company, for the non-compete and non-solicit obligations.
“This preferential issue infuses ₹39,618 crore at an 18.7 per cent premium to 90-day VWAP, backed by dual valuer reports, strengthening Shriram Finance’s capital adequacy amid NBFC scale-up. MUFG’s global expertise in risk/governance aligns with growth in CV/MSME/gold loans, improving funding access and sustainability focus. The shareholding table shows controlled dilution (promoters from 25.39 per cent to 20 per cent), with FII/DII adjustments maintaining institutional stability,” said Ingovern Research in a note.
“Proceeds focus on lending (50 per cent) and debt reduction (38 per cent) supports AUM expansion while optimising leverage. CRISIL monitoring ensures accountability; regulatory gates (RBI/CCI) provide safeguards. The proposal fits Shriram Finance’s post-demerger trajectory, enhancing resilience and shareholder value. Given alignment with capital needs, fair pricing, strong investor credentials, and robust oversight, we recommend shareholders vote for the resolution,” it said.
Last month, the board of Shriram Finance approved entering into definitive agreements with MUFG Bank for an investment of ₹39,618 crore Shriram through a preferential issuance of equity shares. This investment will result in MUFG Bank acquiring a 20 per cent stake on a fully diluted basis.
Published on January 7, 2026
