Ajay Piramal and private equity firm TPG, who are investors in Shriram Capital, will be given an opportunity to exit before the merger takes place.
In a bid to boost its lending and insurance businesses, Shriram Capital is working towards the merger of its listed units.
According to a Bloomberg report, Shriram Capital is considering merging with its publicly traded entities Shriram City Union Finance Ltd and Shriram Transport Finance Co. However, no timeline for the deal has been, set as of yet.
"When Ajay (Piramal) came in he asked about merger, now we are nearer to the time. Buy-in is taking place," said R Thyagarajan, founder of Shriram Capital Group in an interview with the news agency.
Piramal and private equity firm TPG, who are investors in Shriram Capital, will be given an opportunity to exit before the merger takes place.
TPG has held a stake in the Chennai-based group since 2006, while Piramal Enterprises Ltd came on board in 2013 after purchasing TGP's stake in Shriram's transport finance unit.
During the interview, Thyagarajan said that association with the Piramal-led company has been "pleasant", crediting the billionaire industrialist for getting McKinsey & Co advisers on board to help the group improve its practices.
Following the merger, there will be one company in the business of lending to truck buyers and consumers, the 81-year-old Thyagarajan said.
However, the insurance businesses of the group will remain as subsidiaries under the lending business, he added.
