Archive · 13 Jan 2026
Shriram-MUFG Deal: Rating Agencies vs. Proxy Advisors
A big Japanese bank, MUFG, wants to invest a lot of money in an Indian finance company called Shriram Finance.
This deal is worth $4.4 billion and is the largest of its kind in India's finance sector.
Some experts who rate companies say this is a good thing because it will make Shriram Finance stronger.
But other experts who advise investors are worried about some parts of the deal.
They think it might not be fair to all the shareholders.
The main concerns are about who will control the company and a big payment to the current owners to stop them from starting a competing business.
The shareholders will vote on this deal soon.
MUFG's $4.4 billion investment in Shriram Finance has received positive ratings from Care Ratings, Icra, and Moody's.
Proxy advisors SES and IiAS have raised concerns about the deal, particularly regarding control and a non-compete payout.
Shriram Finance seeks shareholder approval for three resolutions, including issuing shares to MUFG and granting controlling rights.
SES argues that MUFG is gaining de-facto control without triggering a mandatory open offer, while IiAS questions the non-compete premium's transparency.
Shareholders will vote on the deal at an extraordinary general meeting on 14 January, with e-voting starting on 11 January.
- Who
- Shriram Finance and Mitsubishi UFJ Financial Group (MUFG)
- What
- Proposed $4.4 billion investment by MUFG in Shriram Finance
- When
- Shareholder approval sought on 14 January
- Where
- India
- Why
- To improve capitalization, access global expertise, and enhance funding diversity
- Deal Value
- $4.4 billion
- MUFG Investment
- ₹39,618 crore
- Non-Compete Payout
- $200 million
- Shareholder Meeting
- 14 January
- E-Voting Start
- 11 January
- Rating Agencies
- Care Ratings, Icra, Moody's
- Proxy Advisors
- SES, IiAS, InGovern
- Promoter Stake Post-Investment
- 20%