Shriram Finance to stay under group’ s control

Indian financial conglomerate Shriram Group will continue to hold control over the board and management of Shriram Finance Ltd

- Sakshi Sadashiv

MUFG acquired 20% in Shriram Finance for $4.4 bn. ISTOCKPHOTO

Indian financial conglomerate Shriram Group will continue to hold control over the board and management of Shriram Finance Ltd, India’s second largest non-banking finance company by assets managed, after Japan's MUFG Bank completes its $4.4 billion investment for a 20% stake in the Chennai-headquartered business, company executives on both sides said on Monday.

MUFG will be classified as a minority public shareholder with board and management control vested with the Shriram Group, said Parag Sharma, managing director (MD) & chief executive officer (CEO), Shriram Finance, at a press conference.

“We are happy with being ata 20% stake, under which MUFG will be classified as a minority public shareholder with the right to appoint two nominee directors,” said Yasushi Itagaki, senior managing corporate executive and group chief operating officer-I, MUFG.