Proxy advisory firms recommend shareholders to approve Shriram Finance-MUFG Bank deal

Proxy advisory firms Ingovern, ISS Proxy Research, and Glass Lewis have advised Shriram Finance shareholders to approve all resolutions related to the MUFG Bank transaction during the extraordinary general meeting scheduled for January 11-13.

The non-banking financial company seeks shareholder authorization for three key proposals: issuing equity shares to MUFG through preferential allocation, granting special investor rights compliant with SEBI regulations, and compensating the promoter Shriram Ownership Trust with a fixed non-compete fee.

“This ₹39,618 crore capital infusion represents an 18.7% premium to Shriram Finance’s 90-day volume-weighted average price, as validated by independent valuation reports,” stated Ingovern Research. The transaction strengthens capital adequacy during business expansion, while MUFG’s global banking expertise enhances risk management capabilities for commercial vehicle, MSME, and gold loan sectors.

The advisory report noted the transaction maintains institutional stability despite reducing promoter ownership to 20%, with 50% of proceeds designated for lending growth and 38% for debt repayment. External monitoring by CRISIL and regulatory approvals from RBI and CCI provide additional oversight safeguards.

The Shriram Finance board approved definitive agreements with MUFG Bank in December, with the investment securing the Japanese financial group a 20% fully diluted stake in the NBFC.

Published on January 7, 2026