Shriram’s shares have risen almost 50% this year, giving the Mumbai-based financial services firm a market value of roughly US$18 billion.
Negotiations are ongoing and may face delays or even fall apart, the people added. A representative for MUFG declined to comment, while Shriram didn’t immediately respond to a request seeking comment.
Shriram operates businesses across urban and rural areas, focusing on loans for commercial vehicles, tractors and passenger cars. It also lends to small and medium-sized enterprises.
Japan’s largest banks are investing in local financial institutions in India, betting on the country’s growth. Sumitomo Mitsui Financial Group Inc became the biggest shareholder of Yes Bank Ltd in a landmark deal earlier this year. It’s now seeking to boost lending and add staff in the nation, having deployed almost US$5 billion.
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The Economic Times had reported MUFG’s interest in buying a stake in Shriram in October.
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