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Shriram Capital, Shriram City Union Finance to merge with Shriram Transport Finance

Shriram Financial Ventures, which served as the holding company for SCL, will henceforth take on the roles of promoter and holding company for the Group's financial services and insurance operations.

November 23, 2022 / 05:20 PM IST
 
 
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Shriram Capital Limited (SCL), the holding company for the Shriram Group, and Shriram City Union Finance, will soon merge with Shriram Transport Finance, Shriram Financial Ventures (Chennai) Private Limited (SFVPL), said on November 23.

Shriram Financial Ventures, which served as the holding company for SCL, will henceforth take on the roles of promoter and holding company for the Group's financial services and insurance operations, according to a press release.

In its statement, SFVPL, which is jointly owned by Shriram Ownership Trust (SOT) and Sanlam Group of South Africa, stated that it would support the growth and development of each of the Group's investee companies while also looking for newer business opportunities in the financial services industry.

It said that the main objective would be to stimulate growth using both technology and finance.

It was reported in July this year that the shareholders and creditors of Shriram Transport Finance Company approved the proposal of amalgamation through voting.

The go-ahead for the merger of the lending subsidiaries received Shriram Group board's approval on December 13 last year. The company believes that the merger would help it bring together all its lending products – commercial vehicles, two-wheeler loans, gold loan, personal loan, auto loan and small enterprise finance - under a single roof.

DV Ravi, the Managing Trustee of SOT, and the erstwhile Managing Director of SCL, will be the Vice Chairman and Managing Director of SFVPL.

Subhasri Sriram, who was the Executive Director and Chief Financial Officer of Shriram Capital, and N S Nanda Kishore Director and CEO of Novac Technology Solutions will be the Joint Managing Directors.

“At a Group level, we have completed a comprehensive exercise of simplifying the corporate structure and businesses under SFVPL, will now be focusing on facilitating the growth in the NBFC and insurance space and also evaluate emerging opportunities and new initiatives in these domains,” said DV Ravi.

The board of SFVPL will comprise of Nominee Directors, Whole Time Directors, and Independent Directors with Dr KP Krishnan (retired IAS Officer), as its Independent Director and Non-Executive Chairman.

For the quarter ended September 2022, Shriram Transport Finance reported net Sales at Rs 5,347.57 crore, up 13.83 percent from Rs. 4,697.86 crore in September 2021, while net profit at Rs 1,069.52 crore in the said quarter rose 38.16 percent from Rs. 774.10 crore in September 2021.

Shares of Shriram Transport Finance ended 0.98 percent lower at Rs 1,333.40 apiece on the BSE on November 23.
Moneycontrol News
first published: Nov 23, 2022 04:04 pm