Shriram Finance to seek shareholder approval for ₹39,617 crore preferential issue to MUFG Bank.
Shriram Finance will hold an EGM on January 14, 2026, to approve a preferential issue of equity shares to MUFG Bank for ₹39,617.98 crore. Shareholders will also vote on special rights for MUFG and a USD 200 million payment to Shriram Ownership Trust for non-compete obligations. Remote e-voting is from January 11-13, 2026.
The substantial preferential issue of ₹39,617.98 crore will significantly impact the company's capital structure and future growth prospects. The approval of special rights and non-compete payments also have a material impact.
The preferential issue to a significant investor like MUFG Bank and the approval for non-compete obligations are positive developments for the company's growth and stability.
Shriram Finance Limited has announced an Extra-Ordinary General Meeting (EGM) scheduled for January 14, 2026, to be held via Video Conferencing (VC) / Other Audio-Visual Means (OAVM). The primary purpose of the EGM is to seek shareholder approval for a preferential issue of equity shares to MUFG Bank Ltd.
This preferential issue involves the issuance of 47,11,21,055 equity shares at an issue price of ₹840.93 per share, aggregating to ₹39,617.98 crore (approximately $3.96 trillion). This issuance represents 20% of the company's post-issue equity share capital on a fully diluted basis. The company will also seek approval for special rights granted to MUFG Bank, including the right to nominate directors, maintain its proportionate shareholding through pre-emptive rights, and second personnel to Shriram Finance.
Additionally, shareholders will vote on an ordinary resolution to approve a one-time, non-recurring payment of USD 200,000,000 (₹16,640 crore) to Shriram Ownership Trust, a promoter, for non-compete and non-solicit obligations. This payment is intended to safeguard the company's goodwill and protect shareholder interests.
Remote e-voting will commence on January 11, 2026, and conclude on January 13, 2026. The cut-off date for determining voting eligibility is January 7, 2026.
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Shriram Finance Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Shriram Finance Limited. Read the original for the full detail.