Shriram Transport Finance Company (STFC), India’s largest commercial vehicle financier, has secured shareholder and creditor approval for the company’s merger with Shriram City Union Finance (SCUF).
Of the total final votes, 97% of shareholders and 99% of secured and unsecured creditors supported the merger, according to the tally at a meeting called by the National Company Law Tribunal (NCLT) on July 4.
The approval marks the fulfillment of one of the few remaining closing conditions for the merger. The company, which is part of the Shriram Group, is now awaiting approval from shareholders and creditors of SCUF and NCLT, the Competition Commission of India and the Insurance Regulatory and Development Authority.
“With the vote of shareholders and creditors, there are only a few more steps before the transaction can be completed. The merger is an opportunity for Shriram to increase its contribution to India’s growing financial needs and strengthen the scale, resilience and diversity needed to thrive in the new normal We are close to the starting line of a new era for Shriram where we are building a fairly diversified loan portfolio that can withstand the test of economic cycles and credit from a growth and asset quality paradigm,” said Umesh Revankar, Vice President and Managing Director, STFC.
The merger agreed in December 2021 advances STFC from the commercial vehicle lending sector to offer a wide range of loans to individuals, such as for two-wheelers, MSMEs and gold financing. The merger of STFC and SCUF will create Shriram Finance, the largest retail non-bank financial company (NBFC) in India.
Dear reader,
Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.
As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.
digital editor