e Ltd. climbed more than 3% on Wednesday, fueled by media reports suggesting Japan's Mitsubishi UFJ Financial Group (MUFG) is eyeing a significant stake in the Indian non-banking financial company (NBFC), though the firm swiftly dismissed the speculation as unfounded. In late morning trade, Shriram Finance's stock rose 3.4% to Rs 637.3 on the National Stock Exchange (NSE), reflecting heightened investor interest following a report that MUFG is in advanced discussions to acquire a 20% equity stake valued at approximately Rs 23,200 crore ($2.6 billion). The proposed deal would involve a preferential allotment of shares, rather than a secondary market transaction, according to sources cited in the report. Notably, MUFG and Shriram Finance are said to have entered an exclusivity agreement to facilitate these negotiations, with potential for the Japanese giant—Asia's largest bank by assets—to pursue a larger or even controlling interest down the line. This prospective tie-up echoes recent forays by Japanese financial institutions into Indian banking, such as Sumitomo Mitsui Financial Group's 24.2% stake in Yes Bank, underscoring growing cross-border interest in India's vibrant NBFC sector.

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