Shriram Capital mulling merger of two lending units

Shriram Capital mulling merger of two lending units

Unlisted Shriram Capital is in the process of firming up the amalgamation with Shriram Transport Finance Co and Shriram City Union Finance after working on the deal for at least three years.
The merged entity would have Rs 1.5 trillion ($20 billion) of assets under management, they said, asking not to be identified as the information isn’t public.

The group’s insurance business will be kept out of any potential transaction after the central bank objected.
ICICI Securities and Morgan Stanley are advising on the merger, which may be announced as soon as the coming weeks. No final decision has been reached, and the discussions could still fall apart.
A deal could help investors in Shriram Capital, including billionaire Ajay Piramal and private equity firm TPG Capital, to cash out.
Shriram Transport is a financier of new and pre-owned trucks, while Shriram City Union funds purchases of consumer goods and motorcycles.

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