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Japan’s MUFG makes a $4.4 billion bet on Shriram Finance
MUMBAI: Shriram Finance has struck a landmark deal with MUFG Bank, which will invest Rs 39,618 crore, about $4.4 billion, through a preferential issuance of equity shares. The transaction will give the Japanese lender a 20.0 per cent stake in Shriram Finance on a fully diluted basis, subject to shareholder and regulatory approvals.
The announcement follows a day after Shriram Finance publicly quashed market speculation around a potential foreign investment, only to confirm one of the biggest such deals India’s financial services sector has seen.
Approved by the board on December 19, the investment is being billed as the largest foreign direct investment into an Indian financial services company. It reinforces Shriram Finance’s standing as the country’s second-largest retail non-banking financial company by assets under management and marks a rare mega-ticket entry by a global bank into India’s lending space.
For Shriram Finance, the timing is strategic. The capital infusion is expected to significantly strengthen its balance sheet, improve capital adequacy and support long-term growth in a competitive lending market. The company said the partnership would also enhance access to lower-cost funding and potentially bolster its credit ratings, while aligning governance and operational practices with global standards.
The collaboration brings together Shriram Finance’s deep domestic reach and distribution network with MUFG’s global scale, financial strength and expertise. Beyond capital, both sides see scope for cooperation in technology, innovation and customer engagement.
Executive vice chairman of Shriram Finance, Umesh Revankar, called the transaction “a defining moment” in the company’s growth journey. He said the entry of MUFG as a key investor reinforced global confidence in India’s financial services sector and Shriram Finance’s leadership within it.
From MUFG’s side, the deal represents its largest investment in India to date. The group has operated in the country for over 130 years and has invested around $1.7 billion so far, supporting employment for about 5,000 people. Group chief executive officer of Mitsubishi UFJ Financial Group, Hironori Kamezawa, said the partnership reflected aligned values and a shared commitment to supporting India’s economic development and financial inclusion.
The transaction still awaits shareholder approval and regulatory clearances, but its significance is already clear. At a time when global capital has grown cautious, MUFG’s move is a statement of confidence in Indian lenders with scale, discipline and reach.
Shriram Finance spent one day denying the chatter. The next, it delivered one of the biggest deals Indian finance has seen in years.
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Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
