Under the deal signed last month, MUFG, one of Japan’s largest lenders, will acquire a 20% stake in Shriram Finance for $4.4 billion, marking the largest cross-border investment in India’s financial sector.
Earlier in the day, Reuters reported the approval for the proposals, citing two sources with direct knowledge of the matter.
The proposals included the issuance of shares to MUFG, which received 98.5% shareholder approval. A resolution allowing MUFG to nominate directors to Shriram Finance’s board was approved with 99.5% of votes, while a one-time payment of $200 million by MUFG to Shriram Finance’s ownership trust received 91.9% approval.
MUFG has been operating in India for more than 130 years and expanded its presence in recent years. In 2022, it invested $565 million in digital lender DMI Finance, becoming its second-largest shareholder with a 20% stake.