Shriram Equipment to merge with parent Shriram Transport Finance
Mumbai: Shriram Equipment Finance Co. Ltd will merge with its holding company Shriram Transport Finance Co. Ltd following losses in the equipment-leasing business due to a prolonged slowdown.
In a filing to BSE Ltd, Shriram Equipment said its board of directors on Friday approved the so-called draft scheme of amalgamation for merging the company with Shriram Transport, subject to it receiving various mandatory approvals.
According to its website, Shriram Equipment has assets under management in excess of ₹ 52,500 crore.
“Infrastructure activity has come to a standstill and we are seeing a logjam with payments not being released by state and federal governments,” Umesh Revankar, Shriram Transport’s managing director and chief executive officer, said on 5 May.
Business was dull in the construction equipment sector and collections were not coming in, which led to a loss of ₹ 217 crore for Shriram Equipment in 2014-15, compared with a profit of ₹ 87 crore in the previous fiscal, Mint reported on 5 May.