Shriram City Union Finance gets shareholders, creditors approval for merger with STFC

Shriram City Union Finance Ltd on Thursday said it has received approval from equity shareholders and creditors for its merger with Shriram Transport Finance Company (STFC).

Of the total final votes, 99.7 per cent of the equity shareholders, 100 per cent of the secured creditors and 99.9 per cent of 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 July 6, a release said.

Chennai-based diversified financial services company Shriram Group, in December last year, had announced the merger of Shriram Capital Ltd (SCL) and Shriram City Union Finance Ltd (SCUF) with Shriram Transport Finance Ltd (STFC).

On Wednesday, STFC said it got approval from equity shareholders and creditors for merger with SCUF.

Last month, the group had received approval for the merger of SCL and SCUF with STFC from the Reserve Bank of India (RBI).

The company is now awaiting approval from NCLT, CCI and IRDA.

The merged entity will be known as Shriram Finance Ltd and it will be the largest retail non-banking finance company in the country.