Shriram Transport Finance gets shareholders, creditors nod for merger

Shriram Transport Finance Company Ltd (STFC) on Wednesday said it has received approval from its equity shareholders and creditors for its merger with Shriram City Union Finance (SCUF). Chennai-based diversified financial services company Shriram Group, in December last year, announced the merger of Shriram Capital Ltd (SCL) and Shriram City Union Finance Ltd (SCUF) with Shriram Transport Finance Ltd (STFC).

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 2022, a release said.

"With the shareholders' and creditors vote out of the way, only a few more steps remain before the deal can close. 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," STFC's Vice Chairman and Managing Director Umesh Revankar said in the release.

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.

Last month, the group had said it received approval for the merger of SCL and SCUF with STFC from the Reserve Bank of India (RBI).

The merged entity will be known as Shriram Finance Ltd and it will be the largest retail finance non-banking finance company (NBFC) in the country.