{"id":6050,"date":"2021-12-14T18:02:52","date_gmt":"2021-12-14T12:32:52","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=6050"},"modified":"2021-12-14T18:02:53","modified_gmt":"2021-12-14T12:32:53","slug":"shriram-city-union-up-11","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/shriram-city-union-up-11\/","title":{"rendered":"Shriram City Union up ~11% After the Announcement of Merging Three Group Companies"},"content":{"rendered":"\n<p>As part of restructuring the group, <a href=\"https:\/\/www.tickertape.in\/stocks\/shriram-city-union-finance-SHCU?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Shriram City Union Finance<\/a> (SCUF) and Shriram Capital (SCL) will be merged with <a href=\"https:\/\/www.tickertape.in\/stocks\/shriram-transport-finance-company-SRTR?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Shriram Transport Finance<\/a>. The new \u200bentity will be named Shriram Finance. Following the news, Shriram City Union soared by ~11%.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/shriram-city-union-up-11\/#What-does-the-merger-entail\" title=\"What does the merger entail?\">What does the merger entail?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/shriram-city-union-up-11\/#How-would-the-merger-help-Shriram-Group\" title=\"How would the merger help Shriram Group?\">How would the merger help Shriram Group?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/shriram-city-union-up-11\/#Post-merger-scenes\" title=\"Post-merger scenes\">Post-merger scenes<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-does-the-merger-entail\"><\/span><strong>What does the merger entail?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In accordance with the merger, Shriram Transport will issue 1.55 shares for each share of SCUF and 0.09783305 share for each share of SCL.<\/p>\n\n\n\n<p>While the boards of the three companies have approved the merger, it is subject to the approval of the <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> of the companies involved besides the regulatory bodies such as the RBI and National Housing Bank.<\/p>\n\n\n\n<p>So far, Shriram Capital was the holding company for the Shriram group&#8217;s businesses. Based on September 2021 <a href=\"https:\/\/www.tickertape.in\/blog\/2021-guide-on-shareholding-pattern-definition-meaning-analysis\/?utm_source=blog&amp;utm_medium=article\">shareholding pattern<\/a>, Shriram Capital holds a stake of 33.86% in Shriram City Union Finance and 25.56% in Shriram Transport Finance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-would-the-merger-help-Shriram-Group\"><\/span><strong>How would the merger help Shriram Group?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The merger would help bring all the group&#8217;s lending products under a single roof, making it a market leader in all its product and consumer segments. The products include two-wheeler loans, commercial vehicles loans, <a href=\"https:\/\/www.tickertape.in\/blog\/personal-loan-with-low-credit-score\/?utm_source=blog&amp;utm_medium=article\">personal loans<\/a>, <a href=\"https:\/\/www.tickertape.in\/blog\/the-golden-behaviour-during-crisis\/\">gold<\/a> loans, auto loans, and small enterprise finance.<\/p>\n\n\n\n<p>The merger would also strengthen SCUF and STFC&#8217;s consumer-related products and offer a holistic product <a href=\"https:\/\/www.tickertape.in\/blog\/can-i-buy-multiple-stocks-in-one-trade\/\">basket<\/a> of all lending products. In addition, the merger would allow the group to cross-sell products of its insurance, broking, and AMC businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post-merger-scenes\"><\/span><strong>Post-merger scenes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>SCUF has an <a href=\"https:\/\/www.tickertape.in\/blog\/assets-under-calculation\/?utm_source=blog&amp;utm_medium=article\">AUM<\/a> of Rs. 35,000 cr. and a distribution network of over 950 branches. The merged entity would have a combined AUM of over Rs. 1,50,000 cr., customers of ~2 cr. served till date, and a distribution network of ~3,500 branches.<\/p>\n\n\n\n<p>Shriram Finance will also add new products catering to retail and SME customers to its portfolio. Additionally, the company is looking to launch a super-app, which will host its existing and new lending products under the Shriram Finance name.<\/p>\n\n\n\n<p>Ajay Piramal, Chairman of PEL, which holds a 9.96% stake in SCUF, said, &#8220;I am pleased to see the coming together of both lending businesses of Shriram. While they emerge as the largest retail finance NBFC, it also opens up immense opportunities for them with the synergies that transpire. It will be an exciting journey for the group as it creates the appropriate value proposition for the combined customer base of over 2 crores.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Merger of Shriram City Union Finance and Shriram Capital with Shriram Transport Finance will enhance the distribution footprint across all business lines without incurring incremental capex.<\/p>\n","protected":false},"author":27,"featured_media":6051,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[1077,1076,15],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/12\/NEW-055.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6050"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=6050"}],"version-history":[{"count":1,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6050\/revisions"}],"predecessor-version":[{"id":6052,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6050\/revisions\/6052"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6051"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=6050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=6050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=6050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}