Three Shriram group firms to merge

Shriram City Union Finance Ltd (SCUF) and Shriram Capital Ltd (SCL) on Monday introduced their merger with group agency Shriram Transport Finance Co (STFC). The merged entity can be named Shriram Finance Ltd.
Before merging with Shriram Transport Finance, SCL will demerge all different companies of the group — particularly, life insurance coverage, common insurance coverage and all non-lending and non-insurance actions and these can be held outdoors the listed agency. The boards of administrators of STFC, SCUF and SCL have authorised the merger plan.
Pursuant to the merger, Shriram Transport will concern 1.55 shares for each 1 share of SCUF and 0.09783305 share for each 1 share of SCL. This interprets into SCL shareholders getting 1 share of STFC for each 1 share held by SCL in STFC and SCL shareholders will get 1.55 STFC shares for each 1 share of SCUF held by SCL
“The merger would help the group bring together all its lending products — commercial vehicles, two-wheeler loans, gold loan, personal loan, auto loan and 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,” Shriram group mentioned in an announcement.
“SCUF brings with it an enviable granular product suite with an AUM of Rs 35,000 crore and a distribution network of over 950 branches. Post-merger with STFC, the merged entity would have a combined AUM of over Rs 1,50,000 crore, over 2 crore customers served till date and a distribution network of over 3500,” it mentioned. DV Ravi, MD Shriram Capital mentioned, “the merger will enhance our distribution footprint across all business lines without incurring any incremental capex …”
Ajay Piramal, chairman, PEL, mentioned, “I am pleased to see the coming together of both lending businesses of Shriram. While they emerge as the largest retail finance NBFC, it also opens up immense opportunities for them with the synergies that transpire…”