New Delhi, Dec. 17 -- MUMBAI: Japan's Mitsubishi UFJ Financial Group (MUFG) is in talks to invest $4.5-5 billion for a 20% stake in Shriram Finance Ltd, multiple sources familiar with the matter said, in what could rank among the largest cross-border deals involving India this year.

"The deal is expected to become larger than earlier planned with about a $4.5-4.7 billion investment," one of the people cited above said, adding that the Shriram Finance's board is expected to meet on Friday to discuss the exact structures. A second person added that it could touch $5 billion with the transaction valuing the overall company at $22-25 billion.

"The fundraise is expected to be a primary in nature with a fresh issuance of shares," a third pers...