Shriram group may merge two of its listed non-banking finance companies

According to analysts and market experts, Shriram Capital will be merged with the new listed entity (STFC and SCUF) through a reverse merger

Shriram group, the Rs 1,000-billion financial conglomerate, may consider merging two of its listed non-banking finance companies — Shriram Transport Finance Company (STFC) and Shriram City Union Finance (SCUF) — to pave the way for listing Shriram Capital, the holding company of the group’s financial businesses.
 

Talks between the group, now headed by billionaire Ajay Piramal, and IDFC Group, on a merger were called off last year after the two sides failed to agree on a swap ratio. 
 

Speaking to Business Standard, R Thyagarajan, founder, Shriram group, said a merger like IDFC-Shriram Capital was complex for Shriram group, and would