STFC Equity shareholders and secured & unsecured creditors approve the merger

• The merger of STFC with SCUF to create Shriram Finance – India’s largest Retail NBFC

MUMBAI, JULY 6, 2022 (GPN): Shriram Transport Finance Company Limited (STFC), India’s largest commercial vehicle financer 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 STFC with Shriram City Union Finance (SCUF). Of the total final votes,  97%  of the equity shareholders, and 99% of the Secured and 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 4 July 2022.

The merger agreed upon in December-21, advances STFC from a pure-play business of commercial vehicle lending to a diversified lender with a product suite across a wide range of retail loans – from two-wheeler to MSME, to gold finance and the commercial vehicle lending space all driven by digital innovation. The merger of STFC and SCUF 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 SCUF shareholders & creditors and NCLT, CCI and IRDA.

Speaking about the merger, Mr Umesh Revankar, VC & MD, Shriram Transport Finance Company said, “With the shareholders’ and Creditors vote out of the way, only a few more steps remain before the deal can close. 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. We are near the starting line of a new era for Shriram where we are building a fairly diversified loan book, which can withstand the test of economic and credit cycles from a growth and asset quality paradigm.”-Ends.