Proxy advisors support Shriram Finance MUFG deal

Proxy advisory firms have expressed support for Shriram Finance’s proposed strategic stake sale to Japan’s MUFG Bank, ahead of the company’s EGM. The transaction is viewed as a strategic initiative to strengthen the company’s capital position and enhance access to global funding.

InGovern recommended voting in favour of the resolutions, noting that the partnership would help reinforce Shriram Finance’s capital base, support adherence to regulatory requirements, and further strengthen governance practices, while continuing to maintain promoter participation.

InGovern Research also highlighted that the preferential issue infuses ₹39,618 crore at an 18.7% premium to the 90-day VWAP, supported by dual valuer reports, enhancing Shriram Finance’s capital adequacy as it scales operations. MUFG’s global expertise in risk and governance is expected to complement growth in CV, MSME, and gold loans, improving funding access and supporting sustainable business practices. The shareholding adjustment reflects controlled dilution (promoters from 25.39% to 20%), with FII/DII participation maintaining institutional stability. InGovern’s views on this development have been quoted in various business news media outlets, including Financial Express, BusinessLine, and Business Standard.

Read the full articles : https://www.financialexpress.com/business/news/proxy-advisors-back-shriram-financemufg-deal/4100512/

https://www.thehindubusinessline.com/money-and-banking/proxy-advisory-firms-recommend-shareholders-to-approve-shriram-finance-mufg-bank-deal/article70483174.ec

https://www.business-standard.com/companies/news/voting-advisory-firms-back-mufg-s-4-4-bn-investment-in-shriram-finance-126010700794_1.html