Shriram Capital halts 3-way merger with NBFC arms after RBI request

Shriram Capital was planning to combine with its publicly traded units Shriram Transport Finance and Shriram City Union Finance

Shriram Capital has held off a plan to merge with its shadow lending arms after the Reserve Bank of India (RBI) requested the group to cut its stake in its insurance business, according to people familiar with the matter.
 
The unlisted Shriram Capital, which counts billionaire Ajay Piramal and private equity firm TPG Capital as investors, was planning to combine with its publicly traded units Shriram Transport Finance and Shriram City Union Finance. The proposal would have effectively turned the merged entity into a shadow lender along with a 77 per cent stake in life and general ventures.