Non-banking finance company Shriram City Union Finance Ltd on Thursday said the company has received approval from equity shareholders and secured and unsecured creditors for the merger of Shriram City with Shriram Transport Finance Company.

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Of the total final votes, 99.7 percent of the equity shareholders, 100 percent of the secured creditors, and 99.9 percent of unsecured creditors were in favour of the deal, according to a vote count at the company's National Company Law Tribunal (NCLT) convened a meeting on July 6, 2022, the company said in a statement.

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

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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 NCLT, CCI, and IRDA, it added.

Speaking about the merger, YS Chakravarti, managing director, and chief executive officer, Shriram City said, "With the shareholders' and creditors' vote out of the way, only a few more steps remain before the deal can be closed and we start a new era for Shriram.

The merger will give us greater scale, lower operating costs, access to lower-cost of funds, increase competitiveness, and wider geographic coverage. For my customer, I will be able to offer him a suite of products under the same umbrella and with convenience like never before with the Super-App."

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

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

Shares of Shriram City Union Finance ended at Rs 1,700.20, down by Rs 47.80, or 2.73 percent on the BSE.

First Published:Jul 7, 2022 9:37 PM IST