Comments
The Shriram Group on Monday announced that Shriram Capital (SCL) and Shriram City Union Finance (SCUF) will merge with Shriram Transport Finance Company (STFC) as part of the group’s corporate restructuring.
The merged entity – Shriram Finance Limited, would be the largest retail finance NBFC in the country.
“The merger is subject to the approval of shareholders of SCL, SCUF and STFC respectively, regulatory approvals of RBI, CCI, IRDA, NHB, NCLT and such other regulatory approvals as may be required,” it said in a stock exchange filing.
All lending products under one roof
The merger would help the group bring together all its lending products – commercial vehicles, two-wheeler loans, gold loan, personal loan, auto loan and small enterprise finance - under a single roof, thereby creating a financial powerhouse which would end up being a market leader in all the product and consumer segments that it operates in, it further said.
Also read: Shriram Group announces succession plan; forms board of management
Shriram Capital, the Promoter entity of the group will also merge with Shriram Transport, post de-merger of all other businesses of the group – namely – life and general insurance and all non-lending and non-insurance activities, it added.
Following the merger, Shriram Transport will issue 1.55 shares for every one share of SCUF and 0.09783305 share for eachshare of SCL.
“This translates into SCL shareholders getting one share of STFC for every one share held by SCL in STFC,” it said. SCL shareholders will get 1.55 STFC shares for every one share of SCUF held by SCL, it further said.
All customers of SCUF and STFC will, post-merger, be able to access all the products of the merged entities through the vast network of over 3,500 branches and sales points of STFC and SCUF.
DV Ravi, MD Shriram Capital said, “The merger will enhance our distribution footprint across all business lines without incurring any incremental capex.”
Umesh Revankar, the Executive Vice Chairman and CEO of STFC, would be the Vice-Chairman of the merged entity. YS Chakravarti, the MD and CEO of Shriram City, would be the MD and CEO of the merged entity.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.