New Delhi, Dec. 19 -- Shares of non-banking finance company (NBFC), Shriram Finance, jumped nearly 4% to hit a fresh record high on Friday, December 19, after the company informed exchanges that Japan's Mitsubishi UFJ Financial Group will pick up a substantial stake in the company.

MUFG will buy a 20% stake in Shriram Finance for $4.4 billion ( Rs.39,618 crore). This not only marks the largest cross-border investment in India's financial sector but also adds to the list of investments by Japanese companies in domestic lenders.

The investment will be made through a preferential issuance of equity shares, and is subject to shareholder approval, regulatory clearances and customary closing conditions, according to a statement on Friday.

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