Shriram Transport Finance Obtains Shareholder Approval to Merge With SCUF

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.

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