Shriram Finance

Shriram Finance scheduled five group meetings with funds and institutional investors in Mumbai on 19 August at Motilal Oswal's 22nd Annual Global Investor Conference. The listed participants included Millennium Partners, Abakkus Asset Managers, Old Bridge Capital Management and Blackrock Asset Management, alongside domestic and international funds, insurers and wealth managers. The discussions were to be based on the company's investor presentation and public-domain disclosures. The lender's AUM stood at ₹3.14tn in the June quarter, up 15.3% from a year earlier.

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By Nishit Navin and Jayshree P Upadhyay

Aug 12 (Reuters) - Bank of America BAC.N will acquire as much as a 49.9% stake in the non-bank lending arm of Jio Financial Services JIOF.NS in a 182.68 billion rupee ($1.92 billion) deal, as the U.S. lender expands its presence in India's fast-growing financial sector.

The deal extends a recent run of large foreign investments in Indian banks and non-bank lenders, which are seeing a strong demand for credit and low loan delinquency rates.

Recent deals include Japan's MUFG 8306.T investment in Shriram Finance SHMF.NS, Dubai-based bank Emirates NBD's ENBD.DU 60% stake purchase in RBL Bank RATB.NS and Sumitomo Mitsui Financial Group's investment in Yes Bank YESB.NS.

Bank of America will become a joint venture partner in non-banking finance company Jio Credit through a preferential allotment of equity shares and warrants, the two companies said on Wednesday.

ACCESS TO A FAST-GROWING MARKET

The transaction, which values Jio Credit at around $3.8 billion according to a Reuters calculation, initially gives BofA a 26.5% stake, with its holding potentially rising to 49.9% after the exercise of the warrants.

Jio Credit will issue shares worth up to 66.13 billion rupees and warrants worth up to 116.55 billion rupees to BofA as part of the deal.

"By combining Jio Financial Services' scale, local expertise and customer base with Bank of America's global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India’s continued economic growth," BofA CEO Brian Moynihan said.

Jio Credit is among India's fastest-growing NBFCs, with assets under management of more than $3 billion as of June-end, within just two years of operations.

The investment offers Jio Credit capital to support its growth while getting the expertise of a global financial firm, Bank of America said.

Non-bank credit in India is growing at a rapid pace of over 14% across segments like personal loans, gold loans and small-business credit.

JIO FINANCIAL's JV STRATEGY

Jio Financial, which listed in 2023 after a demerger from Indian billionaire Mukesh Ambani's Reliance Industries RELI.NS, operates businesses such as digital lending, payments, insurance broking and asset management services.

The company has chosen to forge joint ventures with global firms across a number of its business lines. It offers asset and wealth management services through its joint ventures with BlackRock. It has also entered a JV with Germany's Allianz to offer general and health insurance.

($1 = 95.3300 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Abinaya V, Maju Samuel and Arun Koyyur)

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Shriram Finance scheduled group meetings with investment funds at the Ambit-Daiwa India Access event in Singapore. Participants listed included Millennium Capital, Allianz Global Investors, Balyasny Asset Management, HSBC Global Asset Management and Capital Research Global Investors, alongside other institutions. Senior management was due to attend, and discussions were to be based on the company’s investor presentation and public-domain disclosures. The lender had AUM of ₹3.14tn in Q1 FY27, with commercial vehicles accounting for about 47% of the book.

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By Nishit Navin and Jayshree P Upadhyay

Aug 12 (Reuters) - Bank of America BAC.N will acquire as much as a 49.9% stake in the non-bank lending arm of Jio Financial Services JIOF.NS in a 182.68 billion rupee ($1.92 billion) deal, as the U.S. lender expands its presence in India's fast-growing financial sector.

The deal extends a recent run of large foreign investments in Indian banks and non-bank lenders, which are seeing a strong demand for credit and low loan delinquency rates.

Recent deals include Japan's MUFG 8306.T investment in Shriram Finance SHMF.NS, Dubai-based bank Emirates NBD's ENBD.DU 60% stake purchase in RBL Bank RATB.NS and Sumitomo Mitsui Financial Group's investment in Yes Bank YESB.NS.

Bank of America will become a joint venture partner in non-banking finance company Jio Credit through a preferential allotment of equity shares and warrants, the two companies said on Wednesday.

ACCESS TO A FAST-GROWING MARKET

The transaction, which values Jio Credit at around $3.8 billion according to a Reuters calculation, initially gives BofA a 26.5% stake, with its holding potentially rising to 49.9% after the exercise of the warrants.

Jio Credit will issue shares worth up to 66.13 billion rupees and warrants worth up to 116.55 billion rupees to BofA as part of the deal.

"By combining Jio Financial Services' scale, local expertise and customer base with Bank of America's global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India’s continued economic growth," BofA CEO Brian Moynihan said.

Jio Credit is among India's fastest-growing NBFCs, with assets under management of more than $3 billion as of June-end, within just two years of operations.

The investment offers Jio Credit capital to support its growth while getting the expertise of a global financial firm, Bank of America said.

Non-bank credit in India is growing at a rapid pace of over 14% across segments like personal loans, gold loans and small-business credit.

JIO FINANCIAL's JV STRATEGY

Jio Financial, which listed in 2023 after a demerger from Indian billionaire Mukesh Ambani's Reliance Industries RELI.NS, operates businesses such as digital lending, payments, insurance broking and asset management services.

The company has chosen to forge joint ventures with global firms across a number of its business lines. It offers asset and wealth management services through its joint ventures with BlackRock. It has also entered a JV with Germany's Allianz to offer general and health insurance.

($1 = 95.3300 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Abinaya V, Maju Samuel and Arun Koyyur)

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Shriram Finance scheduled a group meeting with funds and institutional investors for 13 August at the Equirus India Growth Summit in Mumbai. Millennium Partners was among the named participants, alongside mutual funds, insurers and portfolio managers including UTI Mutual Fund, ICICI Prudential Life and DSP Mutual Fund. The session was set for 3pm to 4pm and was to be attended by senior management, with discussion based on public disclosures and the investor presentation. Shriram Finance had ₹3.14tn of assets under management and ₹3,445 crore of profit after tax in the June quarter.

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Shriram Finance scheduled a group meeting with funds and institutional investors at Emkay Confluence 2026: Full Throttle Ahead in Mumbai on August 12. The 2pm-3pm session was due to include Axis Mutual Fund, HSBC Asset Management, ICICI Prudential AMC, SBI Funds Management, White Oak Capital and Motilal Oswal AIF, among others. Discussions were to be based on the company's investor presentation and public-domain disclosures. Shriram Finance had reported June-quarter AUM of ₹3.14 trillion, net profit of ₹3,445 crore and NIM of 9.04%.

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July 24 (Reuters) - Shriram Finance Ltd SHMF.NS:

• WILL CONSIDER RAISING OF FUNDS

• TO CONSIDER RAISING FUNDS VIA ISSUANCE OF DEBT SECURITIES ON PRIVATE PLACEMENT BASIS

Source text: ID:nBSE7ddWTw

Further company coverage: SHMF.NS

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Updates with statements from IDBI, Emirates in paragraph 4, market cap in paragraph 8 after close

By Nikunj Ohri

July 14 (Reuters) - India has received revised bids from Canada's Fairfax Financial FFH.TO and Dubai's Emirates NBD ENBD.DU for the sale of its majority stake in IDBI Bank IDBI.NS, two sources said, reviving a transaction stalled earlier this year over valuation expectations.

India's federal government and state-run Life Insurance Corp of India LIFI.NS are selling a combined 60.7% stake in IDBI Bank, with the transaction expected to be completed in a month, one of the sources said on Tuesday.

The sale process was stalled earlier this year after bids submitted in March by Fairfax and Emirates fell short of the government's expectations.

IDBI Bank said in a statement to exchanges on Tuesday that it cannot confirm or deny reports about Fairfax Financial's offer and has received no government communication on the ongoing disinvestment process. Emirates NBD declined to comment.

The revised bids are being evaluated, and a top panel of bureaucrats met on Monday to discuss the stake sale, a third source said. The Indian government owns 45.48% of IDBI Bank, while LIC holds 49.24%.

Fairfax is the frontrunner to acquire the bank and is in conversation with the government while Emirates is not actively pursuing the deal after having acquired another Indian lender last year, one of the two sources and another source said.

Details of the revised bids and valuation of the bank could not be immediately ascertained. Shares of IDBI Bank closed 2.87% higher at 86.54 rupees, giving the lender a market capitalisation of 930.5 billion rupees.($9.67 billion)

The finance ministry, LIC and Fairfax did not immediately respond to requests for comment. The sources spoke on condition of anonymity to discuss sensitive matters.

The revised bids come amid growing foreign investor interest in India's financial sector.

Last year, Emirates NBD acquired a stake in private lender RBL Bank RATB.NS for $3 billion, while Japan's MUFG 8306.T bought a 20% stake in non-bank lender Shriram Finance SHMF.NS for $4.4 billion, marking some of the largest foreign investments in India's banking industry.

To draw similar interest in state-run banks, India also plans to raise the foreign direct investment limit in them to 49% from 20% presently.

REVIVED SALE PROCESS

IDBI Bank's stake sale process was initiated in 2022 and has since dragged on due to regulatory and procedural approvals.

By March 2026, when the process neared its completion, it stalled due to high government valuation expectations and weak investor appetite amid the Middle East conflict.

Concerns over pension and gratuity liabilities also weighed on bids, Reuters had reported.

($1 = 96.2000 Indian rupees)

(Reporting by Nikunj Ohri, Additional reporting by Ira Dugal and Gopika Gopakumar; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala, Sonia Cheema and Muralikumar Anantharaman)

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MUMBAI, July 8 (Reuters) - India's Shriram Finance SHMF.NS accepted bids worth 20 billion rupees ($209.95 million) for a fresh issue of bonds maturing in about three years and two months, and the reissue of 8% December 2031 bonds, three bankers said on Wednesday.

The reissue will offer a yield of 7.80% and the fresh issue will pay a coupon of 7.8%, they said. The non-banking financial company had invited commitment bids for the issues earlier in the day.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 8:

*Size includes base plus greenshoe for some issues

($1 = 95.2625 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Janane Venkatraman)

(([email protected], Khushi Malhotra))

MUMBAI, July 7 (Reuters) - India's Shriram Finance SHMF.NS plans to raise up to 20 billion rupees ($209.79 million) through a fresh issue of bonds maturing in about three years and two months, and the reissue of 8% December 2031 bonds, three bankers said on Tuesday.

The reissue has a greenshoe option of 5 billion rupees, and will offer a yield of 7.80%, the traders said. The fresh issue will pay a coupon of 7.8%.

The non-banking financial company has invited commitment bids for the issues on Wednesday, they said.

The company did not immediately respond to a Reuters email seeking comment.

ere is the list of deals reported so far on July 7:

* Size includes base plus greenshoe for some issues

($1 = 95.3325 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected], [email protected]))

June 3 (Reuters) - Shriram Finance Ltd SHMF.NS:

• SHRIRAM FINANCE ANNOUNCES ALLIANCE WITH PADUKONE SCHOOL OF BADMINTON TO BOOST GRASSROOTS TALENT ACROSS INDIA

Source text: ID:nPreNY7H9a

Further company coverage: SHMF.NS

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MUMBAI, April 30 (Reuters) - India's Shriram Finance SHMF.NS plans to raise 5 billion rupees ($52.54 million), including a greenshoe option of 4 billion rupees, through the reissue of 9.15% January 2029 bonds, three bankers said on Thursday.

It has invited coupon and commitment bids for the issue on Monday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 30:

*Size includes base plus greenshoe for some issues

($1 = 95.1650 Indian rupees)

(Reporting by Dharamraj Dhutia amd Khushi Malhotra; Editing by Sonia Cheema)

(([email protected], [email protected]))

** Shares of Shriram Finance SHMF.NS fall 4% to 969.95 rupees

** SHMF beat analysts' estimates for fourth-quarter profit while assets under management grew 155

** Management cautious on growth outlook due to the conflict in the Middle East and weaker rainfall forecast

** Investec says overall Q4 was mixed with subdued sequential growth and asset quality deterioration

** Remains sceptical about growth acceleration following the MUFG capital infusion and assumes a 16% AUM CAGR over the next three years

** UBS says SHMF is undergoing structural change following the MUFG deal, addressing legacy issues, and sees scope for further re‑rating given the improving outlook and domestic under‑ownership

** In Dec, MUFG, one of Japan's largest lenders, said it will acquire a 20% stake in an Indian non-bank lender for $4.4 billion

** Thirty- three analysts have a "Buy" rating on average; median PT is 1,200 rupees - data compiled by LSEG

** YTD, SHMF down ~5%

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

Adds details throughout

BENGALURU, April 24 (Reuters) - India's Shriram Finance SHMF.NS posted a bigger-than-expected fourth-quarter profit on Friday, bolstered by growth in lending for commercial and passenger vehicle purchases.

The non-bank lender's profit rose 41% to 30.14 billion rupees ($319.7 million) in the quarter ended March 31, compared with 21.39 billion rupees a year earlier, beating an average analyst estimate of 27.82 billion rupees, as per data compiled by LSEG.

Credit demand in India gained momentum in the second half of the fiscal year that ends in March, as easing inflation and lower taxes supported household spending as well as corporate borrowing.

Analysts said Shriram's dominant position in used commercial vehicle financing - which commands higher yield premiums compared to new vehicle loans - would be a key earnings driver, with assets under management (AUM) growth expected to accelerate over FY26-28.

Its loans for commercial vehicles rose 19.49%, while lending for passenger vehicles climbed about 19.05%. Together these account for almost two-thirds of its 3.02 trillion rupee assets under management, which grew around 15%.

Net interest income - the difference between interest earned from lending activity and paid on borrowings - rose 15.58% to 69.94 billion rupees.

The gross stage 3 ratio - which measures the ratio of loans overdue more than 90 days to total loans, before provisions - edged up slightly to 4.58% from 4.55% a year earlier, and 4.54% in the December quarter.

The net interest margin rose to 8.61% from 8.25% in the same quarter a year earlier.

Analysts said MUFG's $4.4 billion capital infusion , which is expected to lower Shriram Finance's cost of funds over the medium term, provides a structural tailwind to margins.

The board approved the re-appointment of Parag Sharma as MD and CEO for five years. It also approved the appointment of Morihiko Fuji and Shinichi Fujinami, nominee directors of MUFG Bank.

(Reporting by Pranav Kashyap in Bengluru; Editing by Nivedita Bhattacharjee and Ronojoy Mazumdar)

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April 15 (Reuters) - Shriram Finance Ltd SHMF.NS:

• SHRIRAM FINANCE LTD - UNIT GETS IN-PRINCIPAL APPROVAL TO COMMENCE PRIMARY DEALER BUSINESS FROM RESERVE BANK OF INDIA

Source text: ID:nBSE7SX2LB

Further company coverage: SHMF.NS

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April 8 (Reuters) -

• SHRIRAM FINANCE LTD- MUFG BANK, LTD COMPLETES ITS INVESTMENT IN SHRIRAM FINANCE LIMITED

Source text: ID:nBSE5QPSzQ

Further company coverage: SHMF.NS8306.T

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March 25 (Reuters) -

• INDIA COMPETITION WATCHDOG: CCI APPROVES THE ACQUISITION OF CERTAIN SHARES IN SHRIRAM FINANCE BY MUFG BANK

Further company coverage: 8306.T

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** Non-bank lenders Shriram Finance SHMF.NS and Bajaj Finance BJFN.NS rise 2% and 1%, while shadow lenders such as LIC Housing Finance LICH.NS, Muthoot Finance MUTT.NS and Jio Financial JIOF.NS gain 1.5%-2.5%

** Rise amid a CNBC-TV18 report that the Reserve Bank of India is not considering any proposal to cap the tenure or implement a force rotation of the top management of NBFCs

** CNBC-TV18's report follows market speculation that the central bank is contemplating such a move

** BJFN lost 10% last week, taking their three-week drop to about 18%; SHMF lost a modest 0.4% last week

** In a note dated March 10, 2026, Macquarie analysts led by Suresh Ganapathy said that such a regulation "could impact SHMF followed by BJFN and force them to plan for leadership transitions in the near to medium term"

** India's financials .NIFTYFIN lost 5.7% last week as benchmarks logged their worst week in years and confirmed correction, on higher crude prices due to the Middle East conflict, which renewed concerns over economy and earnings

(Reporting by Bharath Rajeswaran in Bengaluru)

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March 12 (Reuters) - Shriram Finance Ltd SHMF.NS:

• SHRIRAM FINANCE - SHRIRAM OVERSEAS INVESTMENTS SUBMITTED APPLICATION FOR LICENSE FOR PRIMARY DEALER BUSINESS TO RBI

Source text: ID:nBSEjS6wp

Further company coverage: SHMF.NS

(([email protected];))

March 9 (Reuters) - Warburg Pincus-backed mortgage lender Truhome Finance has filed for a 30 billion rupees ($325 million) initial public offering, its draft prospectus showed on Monday.

Truhome, formerly known as Shriram Housing Finance, was acquired by the U.S. private equity firm from non-bank lender Shriram Finance SHMF.NS in a 46.3 billion rupees deal in 2024.

• Truhome Finance's IPO comprises an issue of new shares worth 15 billion rupees, and an offer for sale of shares worth 15 billion rupees by Warburg.

• This is the first Indian IPO by a mortgage lender since Bajaj Housing Finance's BAJO.NS 65.6 billion rupees IPO in September 2024.

• Warburg currently owns 98.16% of Truhome.

• Should the offer size remain unchanged, Truhome's IPO would be India's third-largest issue in 2026.

• The company plans to use the IPO proceeds to meet future capital requirements, according to the draft prospectus.

• Truhome's assets under management (AUM) stood at $2.29 billion as of December 2025.

• The company's AUM for the fiscal year ended March 2025 grew 29% to $1.92 billion and more than doubled from fiscal 2023's nearly $872 million.

• JM Financial, IIFL Capital, Jefferies and Kotak Mahindra Capital are the bankers to the issue.

($1 = 92.2930 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)

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By Anton Bridge and Miho Uranaka

TOKYO, Jan 30 (Reuters) - Japan's Mitsubishi UFJ Financial Group 8306.T has seen a surge in interest from Japanese automakers hoping to tap its 20% stake in Indian non-bank lender Shriram Finance SHMF.NS to boost sales in the fast-growing Indian market, an MUFG executive said.

India has become a major investment focus for MUFG - Japan's largest banking group - and for clients such as Toyota, with business generated through the Shriram investment potentially lifting profitability across the group, Yasushi Itagaki, head of MUFG's global operations, told Reuters in an interview.

"Our customers are thinking about this more than we imagined," Itagaki said.

IMPROVING PROFITABILITY

Shriram is a major provider of commercial and passenger vehicle credit to SMEs and individuals, with more than 3,200 branches, including in regions where Japanese firms have little presence.

Since the deal was announced, MUFG has fielded calls from automakers seeking to grow sales, for instance by offering preferential financing through Shriram.

Once the acquisition is completed, MUFG plans to set up a dedicated team to develop such opportunities, with staff on the ground working alongside colleagues in Tokyo and Singapore, Itagaki said.

"It's very natural that we work together on this," Itagaki said.

He said the acquisition could further improve profitability, even after MUFG raised its medium- to long-term return-on-equity target to 12% in May last year.

"If realising synergies is faster than we anticipated we may hit our targets sooner," Itagaki said.

India is also becoming a more attractive investment destination amid growing geopolitical uncertainty.

"In an environment of protectionism and fragmentation, you don't want to rely too much on external demand. I think the U.S. and India are two major countries that can stand firmly on their domestic demand," Itagaki said.

MUFG's $4.4 billion investment for a 20% stake in Shriram - the largest cross-border investment in India's financial sector - adds to its corporate banking, digital finance and startup investments in the country.

Restrictions on foreign investment in India's financial sector are gradually easing, and Itagaki met with Prime Minister Narendra Modi, the central bank governor and other senior officials to advocate for the acquisition.

At a press conference last month, an MUFG Bank executive said lifting the Shriram stake above 50% was a possibility, but Itagaki said further investment was not currently planned.

(Reporting by Anton Bridge and Miho Uranaka. Editing by Mark Potter)

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Jan 28 (Reuters) - Shriram Finance Ltd SHMF.NS:

• GOT TAX ORDERS FOR DEMAND OF 15.5 MILLION RUPEES

Source text: ID:nBSEc5jjTs

Further company coverage: SHMF.NS

(([email protected];))

** Brokerages reiterate positive outlook on non-bank lender Shriram Finance SHMF.NS citing margin expansion, stable asset quality

** Co posted 21.3% y/y Q3 profit rise on Friday

** YTD, stock among top performers on Nifty 50 .NSEI; Last year, stock gained about 72% vs .NSEI 10.5% rise

MARGINS AND ASSET QUALITY DRIVE OPTIMISM

** Nomura ("buy", TP at 1,200 rupees) keeps SHMF as top NBFC pick, citing margin expansion, steady credit costs and lowest net slippages in 10 quarters

** PhillipCapital ("buy", TP at 1200 rupees) says Q3 driven by healthy AUM growth, improving margins, controlled credit costs

** Ambit Capital ("buy", TP at 1249 rupees) says falling cost of funds, stable credit costs position SHFL for strong profitability over next few years

(Reporting by Surbhi Misra in Bengaluru)

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Jan 23 (Reuters) - Shriram Finance Ltd SHMF.NS:

• TO CONSIDER RAISING OF FUNDS VIA NON-CONVERTIBLE DEBT SECURITIES

Source text: ID:nBSE1p3FP

Further company coverage: SHMF.NS

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Jan 21 (Reuters) -

• FITCH PLACES SHRIRAM FINANCE'S 'BB+' RATINGS ON RATING WATCH POSITIVE - STATEMENT

Further company coverage: SHMF.NS

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** Shriram Finance SHMF.NS rises ~3% to 1,010 rupees

** Non-bank lender says it got shareholder nod for three proposals linked to deal with Japan's MUFG 8306.T

** Proposed MUFG deal could drive meaningful structural gains in profitability, asset growth, says Morgan Stanley ("overweight"; hikes PT from 925 rupees to Street-high of 1,325 rupees)

** Adds deal can make co's risk-reward ratio "most attractive in our coverage over multi-year frame"

** Notes investors should focus on FY28 and beyond

** Stock rated "buy" on avg; median PT is 1,100 rupees, per data compiled by LSEG

** SHMF added 72.4% in 2025

(Reporting by Hritam Mukherjee in Bengaluru)

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Jan 15 (Reuters) - Shriram Finance Ltd SHMF.NS:

• S&P GLOBAL RATINGS: SHRIRAM FINANCE RATING RAISED TO 'BBB-/A-3' ON MUFG INVESTMENT

Further company coverage: SHMF.NS

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Updates January 9 story to add company disclosure issued late on Friday in paragraphs 7-8

By Gopika Gopakumar

MUMBAI, Jan 10 (Reuters) - India's central bank has raised objections to Bain Capital's plan to acquire a controlling stake in Manappuram Finance as the U.S. firm has a controlling interest in another Indian lender, three people with direct knowledge of the matter said.

Shares in Manappuram MNFL.NS slid on the news, extending losses to close down 7.8%.

The Reserve Bank of India frowns on investors having control of multiple lenders - whether they be banks or non-banks. Private equity firms that have held 20% or more in non-bank lenders have previously had to divest holdings in the face of RBI opposition.
Bain, which announced its planned investment in the gold loan firm last March, is exploring a phased divestment in Tyger Capital, a smaller firm, to address the RBI's concerns, one of the people said.

The sources were not authorised to speak to media and declined to be identified.

Asked for comment, Bain Capital Special Situations fund, which holds Bain's investment in Tyger Capital, said it has not announced and does not have any plans currently to sell a controlling stake.

The fund is "focused and fully committed to growing Tyger Capital to achieve its full potential in partnership with its management team, given the strong fundamentals and growth opportunities in the markets it serves," it said in a statement late on Friday.

Manappuram, which extends loans where gold is used as collateral, in a late Friday statement to stock exchanges said the Reuters story was "factually incorrect and speculative in nature", without elaborating. However, it said the company had responded to certain clarifications sought by the RBI.

"The necessary filings (including responses to clarifications sought from RBI) have been made ... approval of the RBI for the proposed transaction is pending," Manappuram said.

RBI did not respond to requests for comment. Tyger declined to comment.

Bain received approval for the Manappuram deal, which was announced last March, from India's market regulator and the competition commission, but the RBI is the final authority for the clearance of any large stake purchases in banks and non-bank lenders.

The proposed deal calls for Bain to acquire 18% of Manappuram for around 44 billion rupees ($490 million), after which it would launch an open offer for an additional 26%. That would make Bain one of two controlling shareholders with the right to influence management decisions.

The investments would be made through two of its funds, BC Asia Investments XXV and BC Asia Investments XIV.

Bain owns 93% of non-bank lender Tyger Capital, formerly Adani Capital, after purchasing shares from the Adani family in 2023.

Bain has argued that the investments are being made through different funds and teams, but that argument is unlikely to sway the RBI, according to one source.

Manappuram has a 315 billion rupee ($3.5 billion) loan book, focused on fast-growing gold loans. Tyger has a smaller asset base of 73.2 billion rupees that includes business, farm and home loans.

India's financial sector saw a rush of foreign investments last year. Japan's MUFG 8306.T announced in December it would take a 20% stake in Shriram Finance for $4.4 billion. Blackstone BX.N agreed in October it would pay around $700 million for a 9.9% stake in India's Federal Bank FED.NS.

(Reporting by Gopika Gopakumar; Editing by Ira Dugal, Edwina Gibbs and William Mallard)

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Dec 31 (Reuters) - Shriram Finance Ltd SHMF.NS:

• GETS TAX PENALTY FOR 130.4 MILLION RUPEES

Source text: ID:nBSE2mBpCS

Further company coverage: SHMF.NS

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** India's Shriram Finance SHMF.NS gains 2.2% to a fresh record high of 921 rupees

** Stock extends gains from Friday when Japan's Mitsubishi UFG Financial Group said it will buy 20% stake in the Indian NBFC for $4.4 bln

** Stock rose ~4% to a record high after news on Friday

** Jefferies ("buy," PT: 1,060 rupees) says deal will boost SHMF's capital base and prospects of a credit rating upgrade

** Nomura ("buy," PT: 1,140 rupees) calls deal "a big positive," adding that a premier Japanese bank can bring expertise in various aspects of SHMF's operations and business model

** Avg rating on SHMF at "buy"; median PT is 860 rupees - data compiled by LSEG

** YTD, stock up 59.3%

(Reporting by Kashish Tandon in Bengaluru)

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