RBI issues NOC for Shriram Group companies merger

The Reserve Bank of India (RBI) on June 15 granted it’s no-objection certificate to the merger scheme of Shriram Group companies, as per an exchange filing on June 16.

“We wish to inform you that Reserve Bank of India vide its letter dated June 15, 2022 has issued No Objection to the Scheme with usual and normal conditions as generally stipulated in such similar approvals,” Shriram Transport Finance Corp (STFC) said.

Speaking to Moneycontrol, STFC chief Umesh Revankar said the NBFC has shareholders’ meeting on July 4 and July 6 following which the National Company Law Tribunal (NCLT) has to announce the merger.

“It may happen by October,” Revankar said.

STFC is aiming 12 percent year-on-year growth in advances in FY23 on a standalone basis and 15 percent loan growth for consolidated entity post-merger, Revankar told Moneycontrol in an interview on May 2.

The Board of Shriram Group on December 13 had approved the merger of its lending subsidiaries SCL and SCUF with STFC. The merged entity would be known as Shriram Finance.