India's Shriram Finance rises on report MUFG considers majority control

By Reuters News

** Shares of India's Shriram Finance SHMF.NS rise 6.05% to 984.65 rupees

** Stock rises after Bloomberg News reports that Japan's Mitsubishi UFJ Financial Group (MUFG) 8306.T is exploring ways to gain majority control of Shriram Finance

** MUFG is in early stages of considering raising its stake in Shriram Finance to more than 50% from about 20% currently, the report said, citing people familiar with the matter

** The Japanese lender may need to invest more than $10 billion to gain control, though it has not set a firm timeline for potential deal, according to the report

** MUFG and Shriram Finance did not immediately respond to Reuters requests for comment

** Last December, MUFG agreed to acquire 20% stake in Shriram Finance for $4.4 billion, marking the largest cross-border investment in India's financial sector at the time

** SHMF stock up 72.40%, YTD

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.