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Shriram Group likely to announce merger of two lending subsidiaries under Shriram Capital

Financial services company Shriram Group is likely to announce the merger of its two lending subsidiaries under Shriram Capital Ltd, as part of the plan to consolidate the business after years of running it as separate entities.

Shriram City Union Finance, the consumer finance arm of the group will be merged with Shriram Transport Finance, the larger commercial vehicle finance company of the group.

The creation of a single lending entity is the second step for the group after it announced the creation of a management board to oversee the group’s functioning late last month.

On November 30, the group announced the creation of a four member board of management which will henceforth drive the group’s vision.

The board includes DV Ravi, MD, Shriram Capital, R. Duruvasan, Whole-time Director, Shriram Capital, Umesh Revankar, Non-Executive Director, Shriram Capital and Jasmit Singh Gujral, Non-executive Director, Shriram Capital. All the four senior members will be designated as trustees of the Shriram Ownership Trust (SOT), which is controlled by the promoters of the group.

“In my various interactions, I have reiterated that one individual cannot manage a large group like ours, it requires a set of individuals with varied skills who can collaborate to drive the group’s vision and strategy,” R Thyagarajan, founder, Shriram group had said.

“In line with my conviction, a leadership team that will oversee the SOT’s interest, as the promoter of the Shriram Group, has been constituted.”

Shriram Ownership Trust and Shriwell Trusts together own 42.9% of the unlisted Shriram Capital which is the holding company for all the businesses. The group has assets under management of more than Rs 2 lakh crore.

The twin Shriram Group companies were trading mixed on the BSE. Shriram Transport Finance was down 1.65% while Shriram City Union was up 0.60%.

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