Shriram City Union Finance Ltd. (Shriram City), a leading financier to Small Business Enterprises and India's largest two-wheeler financer (based on number of 2W financed) and part of the Shriram Group announced today that the company has received approval from equity shareholders and secured and unsecured creditors for the merger of Shriram City with Shriram Transport Finance Company (STFC). Of the total final votes, 99.7% of the Equity Shareholders, 100% of the Secured Creditors and 99.9% of 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 6 July 2022.
The merger agreed upon in December-21, advances Shriram City from a mid-sized NBFC to a diversified lender with a product suite across a wide range of retail loans - from vehicle to MSME, to gold finance and the commercial vehicle lending space all driven by digital innovation. The merger of STFC and Shriram City will create Shriram Finance - India's largest retail NBFC.
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 NCLT, CCI and IRDA.
Speaking about the merger, Y.S. Chakravarti, MD & CEO, Shriram City said, "With the shareholders' and creditors' vote out of the way, only a few more steps remain before the deal can be closed and we start a new era for Shriram. The merger will give us greater scale, lower operating costs, access to lower-cost of funds, increase competitiveness and wider geographic coverage. For my customer, I will be able to offer him a suite of products under the same umbrella and with convenience like never before with the Super-App."
Shares of Shriram City Union Finance Limited was last trading in BSE at Rs. 1709.20 as compared to the previous close of Rs. 1748.00. The total number of shares traded during the day was 2212 in over 647 trades.
The stock hit an intraday high of Rs. 1764.90 and intraday low of 1691.60. The net turnover during the day was Rs. 3801250.00.