Shriram Equipment to Amalgamate With Transport Finance

New Delhi: Shriram Equipment Finance Company (SEFC) on Wednesday said it will amalgamate with Shriram Transport Finance Co Ltd (STFC) for better synergy.

"The Boards of Directors of the company and of Shriram Transport Finance's (STFC) in their respective meetings held on June 26, 2015 have decided to amalgamate SEFC with STFC," the company said in a filing to the BSE.

In view of the same, SEFC has applied to the exchange for withdrawal of the certain securities from dealings on the exchange, it added.

It said the amalgamation will provide the company to have better operational synergies.

"Integration will give better leverage of STFC network. Expand reach given presence across its widespread STFC branch offices," it said.

Further, the network or employee base of STFC is 10 times that of SEFC, which will benefit the company.

The company said, in this connection, it is planning for delisting of the NCDs issued on private placement basis.

SEFC said the NCDs would be listed again in the name of Shriram Transport Finance Company Ltd after the completion of the proposed amalgamation and the rating of the NCDs would be 'AA+' as before.

Shares in STFC, on Wednesday, ended 0.85 per cent lower at Rs 881.85 apiece on the BSE.