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Shriram Group is planning to hire additional 2,500 people for the proposed merged financial services business in the next 18-24 months. Currently, the scheme is awaiting insurance regulatory IRDAI and CCI approval. RBI has already accorded its approval for the composite merger.
Shriram City Union Finance's Managing Director and CEO YS Chakravarti said that currently, the combined employee strength of SCUF and STFC is 51,000, as reported by PTI.
Chakravarti added that "once the merger happens, we will recruit people to sell SCUF's products in these states. We will be adding 2,500 people over the next 18-24 months on the sales, credit, and collection sides."
Notably, Chakravarti is also set to be the Managing Director and CEO-designate of the proposed entity Shriram Finance which will be the largest retail finance non-banking finance company (NBFC) in the country.
Last year in December, the Group had announced a composite scheme of arrangement and amalgamation of financial services business including two listed firms Shriram Transport and Shriram City Union Finance.
Further, Chakravarti stated that post-merger, the group plans to divide the business into five different geographical areas, each being led by a joint managing director (JMD).
Also, he said that the scheme is now awaiting approval from the insurance regulator Insurance Regulatory and Development Authority of India (Irdai), and the Competition Commission of India (CCI).
The scheme involves - an amalgamation of Shrilekha Business Consultancy with Shriram Capital (SCL); demerger of undertaking from SCL, carrying on the businesses of Financial Services and other businesses, and the transfer and vesting thereof into Shriram Investment Holdings (SIHL); demerger of undertakings from SCL carrying on the businesses of a) Life Insurance and b) General Insurance, and the transfer and vesting of the same into a) Shriram LI Holdings ("SLIH"), b) Shriram GI Holdings Private Limited ("SGIH") respectively; an amalgamation of SCL (with its remaining undertaking and investments) with Shriram Transport Finance Company (STFC); and an amalgamation of Shriram City Union Finance Limited ("SCUP") with STFC.
Earlier this month, RBI issued a no objection to the Scheme.
On Monday, Shriram Transport closed at ₹1137.15 apiece down by 0.97%. While Shriram City shares closed at ₹1590.50 apiece lower by 1.65% on BSE.
The National Company Law Tribunal (NCLT) has called for the voting of creditors and shareholders of STFC, SCUF, and SCL, he added saying, "from there, expect the NCLT to come back to us with an approval anywhere between 60-90 days."
In December last year, the Group had informed that the merged entity will have a combined asset under management (AUM) of more than ₹1.5 lakh crore and a distribution network of over 3,500 branches.