Shriram Transport Finance Company Limited (BSE:511218) agreed to acquire Shriram City Union Finance Limited (BSE:532498) from Shriram Capital Limited, Piramal Enterprises Limited (BSE:500302), Dynasty Acquisition (FPI) Ltd. and others for approximately INR 150 billion on December 13, 2021. Shareholders of Shriram City Union Finance Limited to receive 1.55 shares of Shriram Transport for every 1 share. In related transaction, Shriram Transport Finance Company Limited agreed to acquire Shriram Capital Limited from Shrilekha Business Consultancy P Ltd, Shriram Financial Ventures (Chennai) P Ltd and TPG Capital, L.P. The transaction is subjected to antitrust approval, regulatory approvals, creditors approval and such other approvals as may be required. As of July 6, 2022, the STFC has received approval from equity shareholders and secured and unsecured creditors for the merger of STFC with Shriram City Union Finance (SCUF). The company now awaits approval from SCUF shareholders and creditors and NCLT, CCI and IRDA. As of July 28, 2022, the merger has been greenlighted by SEBI, the stock exchanges, Reserve Bank of India, Shriram City Union Finance shareholders. As of November 10, 2022, Competition Commission of India and National Company Law approved the deal. The transaction is approved by the Board of Shriram Transport Finance Company Limited. Transaction is expected to complete by October or November 2022.

Morgan Stanley India Company Private Limited and ICICI Securities Limited (NSEI:ISEC) have acted as Financial Advisors for this transaction. EY assisted in the restructuring and taxation assessment for the transaction. HSBC Securities and Capital Markets (India) Private Limited and J&M Legal have helped with the Fairness opinion. PWC will help Shriram Transport and Shriram City Union Finance navigate through the post-merger integration process. The valuation exercise has been conducted by Bansi S. Mehta & Co. and Ernst and Young (EY). EY acted as financial advisor to Shriram City Union Finance Limited and Shriram Transport Finance Company Limited.