Shriram Finance aims to double assets in 3.5 years

SHRIRAM FINANCE IS expected to more than double its assets in about three-and-a-half years, said its Executive Vice-Chairman, Umesh Revankar, after securing a long-awaited strategic partnership with Japan’s Mitsubishi UF] Financial Group (MUFG).

- KSHIPRA PETKAR & MAHESH NAYAK

The deal, which will infuse nearly %40,000 crore ($4.4 billion) into the NBFC, is aimed at strengthening capital buffers, lowering borrowing costs, and supporting the NBFC’s next phase of expansion.

“The partnership is the culmination of a two-year global search,’ said Revankar, who began exploring strategic options when the company realised that its promoter shareholding structure—at around 25%—limited its ability to raise capital through repeated equity issuances.“The choice was either to rely only on internal accruals or to bring in a strong partner with similar beliefs and a long-term view,’ he said.“We travelled to Japan and Korea to meet potential partners, but while Korean institutions lacked the scale and cultural alignment Shriram Finance sought, Japanesebanks stood out for their long-term approach, respect for local management autonomy and deep experience in retail lending across Asia,’ stated Revankar.