Shriram Transport Finance Company Ltd (STFC) has received approvals from equity shareholders and secured and unsecured creditors for the proposed merger with Shriram City Union Finance (SCUF), it said on Wednesday.
As many as 97% of the equity shareholders and 99% of the secured and unsecured creditors were in favour of the deal, at a National Company Law Tribunal (NCLT)-convened meeting on 4 July, it said.
The merger agreed upon in December 2021 takes STFC from being a pure-play business of commercial vehicle lending to a diversified lender with products ranging from two-wheeler to MSME, to gold finance and in the commercial vehicle lending space, the company.
The merger of STFC and SCUF will create Shriram Finance, India’s largest retail non-banking financial company, it said.
“The merger is an opportunity for Shriram to increase its contribution to India’s growing financial needs and build the scale, resilience and diversity to thrive in the new normal,” said Umesh Revankar, vice-chairman and managing director, Shriram Transport Finance said,