Shriram Transport Finance on Wednesday said it has received approval from equity shareholders and secured and unsecured creditors for its merger with Shriram City Union Finance (SCUF).

“Of the total final votes, 97 per cent of the equity shareholders and 99 per cent of the secured and unsecured creditors were in favour of the deal, according to a vote count at the company’s National Company Law Tribunal (NCLT) convened meeting on July 4,” it said.

Nearing new era

The shareholders’ and creditors’ approval marks the completion of one of the few remaining closing conditions for the merger. The company now awaits approval from SCUF shareholders and creditors, and NCLT, CCI and IRDA. The merger of the two NBFCs was announced in December 2021 and will create Shriram Finance, which will be the country’s largest retail NBFC.

“The merger is an opportunity for Shriram to increase its contribution to India’s growing financial needs and build the scale, resilience and diversity to thrive in the new normal. We are near the starting line of a new era for Shriram where we are building a fairly diversified loan book, which can withstand the test of economic and credit cycles from a growth and asset quality paradigm,” Umesh Revankar, VC and MD, Shriram Transport Finance Company.