Shriram Finance says no binding deal with MUFG, dismisses $5bn stake rumours

MUMBAI: Shriram Finance has moved swiftly to quash market chatter that Japan’s MUFG was set to invest up to $5 billion for a 20 per cent stake. The company said it had already informed stock exchanges on December 16 about a board meeting on December 19 to consider fund-raising proposals via multiple avenues.

In line with SEBI’s May 2024 circular on industry standards for rumour verification, Shriram Finance said it is not obliged to confirm, deny or clarify reports surfacing between the pre-intimation and the board meeting. The company also closed its trading window for all designated persons from December 17.

“The company is on a growth trajectory and routinely explores opportunities aimed at enhancing shareholder value. as of now, no binding agreement, arrangement or understanding has been executed with any investor,” it said, stressing that nothing warrants a disclosure under regulation 30.

On queries about unpublished information explaining unusual stock movements, the company reiterated that, save for previously disclosed board meeting plans, no additional information exists. Regulatory or legal proceedings in relation to the news are also not applicable.

Shriram Finance reaffirmed that it follows robust corporate governance practices, keeping exchanges informed of material events while respecting SEBI guidelines.

The company’s statement leaves the market on edge, but firmly signals that any major deals will be announced only when ink hits paper.