Shriram Transport gets creditors, shareholders' go ahead for proposed merger

7 Jul 2022 , 01:53 PM

Shriram Transport Finance Company Limited (STFC) announced that the proposed merger with Shriram City Union Finance has been approved by equity shareholders, and secured & unsecured creditors.

According to a vote count at the company’s National Company Law Tribunal-convened meeting on 4 July, 97% of the equity shareholders and 99% of the secured and unsecured creditors voted in favour of the deal.

According to the company, the anticipated merger will transform STFC from a pure-play commercial vehicle lending business to a diversified lender with products ranging from two-wheelers to MSME, gold finance, and commercial vehicle lending.

According to the company, the merger of STFC and SCUF will result in Shriram Finance, India’s largest retail non-banking financial company.

The company is now looking forward to the approval from SCUF shareholders and creditors, and NCLT, the Competition Commission of India, and the Insurance Regulatory and Development Authority.

At around 1.58 PM, Shriram Transport Finance was trading at Rs1,283.60 down by Rs0.35 or 0.03% from its previous closing of Rs1,283.95 on the BSE. The scrip hit intraday high and low of Rs1,291.85 and Rs1,259 respectively.