See 10% PAT growth due to merger in 2 years: Shriram Transport Finance

The shareholders of Shriram City Union Finance will get a stake in Shriram Transport Finance Corporation, Umesh Revankar, the VC and MD of Shriram Transport Finance told CNBC-TV18 adding that the deal is a win-win for shareholders, customers, and employees. Revankar further said the deal timing is perfect due to improving economic conditions. He sees an incremental 10 percent growth in the profit after tax (PAT) due to the merger for the first two years.

“Our assessment is that incremental bottomline growth, because of this merger would be around 10 percent, at least for first 2 years,” he said.

“This particular scheme is a composite scheme, where a portion of Shriram Capital, which holds Shriram Transport and Shriram City Union shares, only to that extent gets merge and also Shriram City Union getting merged. So, the shareholders of Shriram Capital will get shares to the extent of their holding plus Shriram City Union and Shriram Transport have a swap ratio 1:1.55,” said Revankar.