Shriram Transport Finance Company (STFC) received approval from the Competition Commission of India (CCI) for its merger with Shriram City Union Finance Company, on Monday. The merged entity, christened Shriram Finance, will be India’s largest retail NBFC with assets under management (AUM) of Rs 1.65 trillion as of June 2022.
Umesh Revankar, VC & MD of STFC said, “With this approval, we have now received approvals for the merger of Shriram City with Shriram Transport Finance from Sebi, BSE, NSE, shareholders, secured creditors, unsecured creditors, CCI and Insurance Regulatory & Development Authority and Reserve Bank of India and now only await the final go-ahead from National Company Law Tribunal (NCLT).”
The group has begun the process of assigning responsibilities to geographical unit heads and their immediate juniors besides orienting the business teams of both Shriram City and Shriram Transport to the products. Currently, the orientation process which began in April as a pilot project in about 50 branches and has now been rolled out to around additional 500 branches of both companies.
“In preparation to commence operations in the merged entity, we have launched the pilot business as a combined entity across 550 branches in all five geographical units. This endeavour will be scaled up progressively until the merger day. The teams and systems integration is progressing well and we expect business stability to be maintained, while synergy would help us in building up future firm value for all stakeholders through the merger,” said Revankar.
The integration of IT systems is also progressing well and the group will be able to hit the ground running as a merged unit when it is in a position to announce the final merger. The group had earlier said it expects to get NCLT approval by end of September and would be able to stick to its original road map of either September or October for becoming a single legal entity.