The Shriram Group said on Tuesday it has received Competition Commission of India approval for the merger of its financial services entities – Shriram Transport Finance Company and Shriram City Union Finance Company.
Shriram Transport MD Umesh Revankar said in a statement the CCI nod comes after approvals from SEBI, RBI, the stock exchanges, creditors, and the insurance regulator IRDA.
“We now only await the final go-ahead from the National Company Law Tribunal (NCLT). 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,” he said.
The Shriram Group expects business stability to be maintained, even as the teams and systems integration is progressing. The merged entity Shriram Finance will be India’s largest Retail NBFC with Assets Under Management of Rs 1.65 lakh crore as of June 2022.
For the combined entity, Revankar would be the Vice-Chairman while Shriram City’s MD & CEO YS Chakravarti would be the MD and CEO, according to an earlier statement.
The combined financial service entity, Shriram Finance Ltd, would benefit from the multiplier effect of the unification of numerous market channels, and leverage data analytics to serve customers better.