MUMBAI, Dec. 19 -- Mitsubishi UFJ Financial Group (MUFG) is set to invest Rs.39,618 crore ($4.4 billion) for a 20% stake in Shriram Finance Ltd, marking one of the largest cross-border transactions this year and adding to the growing pipeline of deals in the India-Japan corridor.

The investment will be made through a preferential issuance of equity shares, according to a statement on Friday.

Mint reported on 17 December that MUFG plans to invest $4.5 billion-5 billion for a 20% stake in Shriram Finance, valuing the company at $22 billion-25 billion. Shriram notified the stock exchanges about the board meeting on Friday to discuss a proposal to raise funds through a rights issue, preferential allotment, qualified institutional placement,...