Shriram Finance on Wednesday said it has not entered into any binding agreement with any investor, responding to a stock exchange query on a media report that Japan’s Mitsubishi UFJ Financial Group (MUFG) may invest up to $5 billion in the company for a 20% stake.
Response to Market Speculation
In a clarification to the exchanges on Thursday, the non-banking financial company (NBFC) said it had already informed investors on December 16 about a board meeting scheduled for Friday to consider proposals for raising funds through various avenues.
“As on date, no binding agreement, arrangement or understanding has been executed with any investor, and there are no such arrangements that warrant a disclosure under Regulation 30 of the Listing Regulations at this stage,” the company said. The company also said it is not aware of any undisclosed information that could explain trading activity in its shares and that the article has no material impact on the company.
Strategic Fund Raising
Shriram Finance added that it routinely evaluates growth opportunities aimed at enhancing shareholder value and that its trading window for dealing in securities has been closed with effect from Wednesday for designated persons, in line with regulatory requirements.
Any appropriate disclosure, if required, would be made after the conclusion of the board meeting in accordance with SEBI regulations, the company said.