Shriram Finance's board approved a preferential equity issuance of 47.11 crore shares at ₹840.93 each to MUFG Bank, resulting in a 20% minority stake acquisition worth ₹39,617 crore. The deal is the largest foreign investment in India's financial services sector and requires approvals from shareholders, RBI, and the Competition Commission. MUFG will receive minority protection rights like board nominations and pre-emptive rights, expiring if its stake drops below 10%. Additionally, MUFG will pay $200 million as a non-compete fee to Shriram's promoter entity. The promoter Shriram Capital is considering restructuring its lending business, but no final decision is made yet.