Non-banking financial firms Shriram Transport Finance Company and Shriram City Union Finance (SCUF) are in early stages of discussion for merger, a person privy of the matter said on Monday.
The move is aimed at listing the holding company Shriram Capital. “Discussions are going on. The advantages and merits of the merger are being looked into,” the person said.
However, it is not a binding constraint to merge STFC and SCUF for listing process of Shriram Capital as the group is also looking to go solo to list the holding company that manages the financial services arms of the business conglomerate.
“We are looking at various options, including listing of Shriram Captial solo also,” said the person. On asked how much time it can take if things materialises, the person said that the there is no such hurry. “If things fall in place, the merger can happen in about 8-9 months,” the person added further.
Shriram Transport Finance mainly caters to the financing needs of customers who want to own commercial vehicles.
With over 1,213 branches and 930 rural centres across the country, the non-banking financial company has a large presence in financing pre-owned trucks and small truck owners.
The company’s asset stands at Rs95,306 crore. Shriram City is among the players in the retail financing space.
The company offers multiple loan products to small business owners and for acquiring assets such as two wheelers, commercial vehicles, passenger vehicles and homes.
It also offers loans against gold ornaments and for personal consumption.
Source: Mint