Shriram Transport Finance Company Ltd (STFC) on Tuesday said it has received approval from the Competition Commission of India (CCI) for the Composite Scheme of Arrangement and Amalgamation entailing merger of STFC, Shriram City Union Finance Ltd (SCUF) and Shriram Capital Ltd (SCL).
Specifically, the Composite Scheme of Arrangement and Amalgamation is between Shrilekha Business Consultancy Pvt Ltd and Shriram Financial Ventures (Chennai) Pvt Ltd and SCL (with its remaining undertaking and investments) and STFC Ltd and SCUF Ltd and Shriram LI Holdings Pvt Ltd and Shriram GI Holdings Pvt Ltd and Shriram Investment Holdings Ltd and their respective Shareholders.
The Reserve Bank of India vide its letter dated June 15, 2022 conveyed its No-Objection to the Scheme with usual and normal conditions as generally stipulated in such similar approvals, STFC said.
As per the directions of the National Company Law Tribunal (NCLT), Chennai, in the common order dated May 11, 2022, the meeting of the Equity Shareholders, Secured Creditors and Unsecured Creditors was held on July 4, 2022 and the Scheme was approved by the requisite majority of the Equity shareholders, Secured Creditors and Unsecured Creditors in their respective meetings, it added
The company had filed the Petition with NCLT on July 14, 2022 for sanctioning of the Scheme.
The Scheme is subject to approval of regulatory and statutory authorities and NCLT. .
Pursuant to the merger, STFC will issue 1.55 shares for every 1 share of SCUF and 0.09783305 share for every 1 share of SCL. The name of the merged entity will be “Shriram Finance Limited”.
“The merger would help the group bring together all its lending products – Commercial vehicles, Two-Wheeler Loans, Gold Loan, Personal Loan, Auto Loan & 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,” STCF had said in a regulatory filing in December 2021.