Mumbai Shriram Transport Finance Company Limited (STFC) has received approval from equity shareholders and secured and unsecured creditors for the proposed merger with Shriram City Union Finance (SCUF), it said on Wednesday.
In a meeting convened by the National Company Law Tribunal (NCLT) on July 4, 97% equity shareholders and 99% secured and unsecured creditors were in favor of the deal.
The merger agreed in December 2021 takes STFC from being a pure-play business of commercial vehicle lending to a diversified lender with the company’s products from two-wheeler to MSME, gold finance and commercial vehicle lending space.
The merger of STFC and SCUF will create Shriram Finance, India’s largest retail non-banking financial company.
Umesh Revankar, Vice President and Managing Director, Shriram Transport Finance said, “The merger is an opportunity for Shriram to increase its contribution to India’s growing financial needs and build scale, flexibility and diversity to thrive in the new normal.”