Indian Shadow Lender Shriram Group to Merge Its Two Listed Lending Units
- The group is merging its two publicly listed lending firms
- The deal could help some investors in the group to cash out
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Shriram City Union Finance Ltd., an Indian shadow lender, is merging with Shriram Transport Finance Co. in a restructuring that the group said will create the largest shadow lender to consumers in the country.
The swap ratio has been fixed at 100 Shriram City shares for 155 Shriram Transport shares, according to an exchange filing Monday. Shares of Shriram City surged as much as 10.5% following the announcement, while those of Shriram Transport fell 6.3% in Mumbai trading.