Shriram group is all set to amalgamate Shriram Capital (SCL) and Shriram City Union Finance (SCUF) with Shriram Transport Finance Company (STFC). The merged entity, to be known as Shriram Finance, will be the largest retail finance non-banking finance company (NBFC) in the country. The expected timeline for completion of the proposed merger is 9-10 months.
The merger will enhance distribution footprint across all business lines without incurring any incremental capex. The benefits are likely to accrue due to synergy benefits and the digital initiatives are immense. This merger will also simplify holding structure eliminating multiple layers.
Post-merger with Shriram Transport Finance Company, the merged entity would have a combined asset under management (AUM) of over Rs 1.5 lakh crore, over 2 crore customers served till date and a distribution network of over 3,500 branches.
Shriram Transport Finance Company is a flagship company of the Chennai-based Shriram group and is classified as deposit taking Asset Financing NBFC.
