The Shriram Group on Monday announced a scheme of merger of three companies. The merged entity will be known as Shriram Finance, according to a press release.

The boards of Shriram City Union and Shriram Transport Finance, and their promoter Shriram Capital approved the proposed merger of the three entities.

The entity will emerge the largest retail finance NBFC in the country, having combined assets under management (AUMs) of Rs 1.5 lakh crore.

The merger is subject to approval of shareholders of the three companies as well as regulators, the group said.

Market expert Prakash Diwan believes that the restructuring would be value accretive for both the companies.

Shriram City Union shares ended 5.7 percent higher at Rs 2,140 apiece on BSE, and Shriram Transport Finance declined 1.1 percent to Rs 1,486.2 apiece.

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First Published:Dec 13, 2021 4:56 PM IST