FMO acquires 3.5 per cent stake in 2 Shriram entities

Chennai: The Netherlands Development Finance Company, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N V (FMO) has acquired 3.95 per cent equity in the Chennai-based Shriram Investments Limited and Shriram Transport Finance Company Limited, the two-truck financing outfits of the Rs4,000-crore Shriram group.

UTI Bank, Reliance Capital and Citicorp have already invested into the two companies.

According to R Thyagarajan, chairman, Shriram Group, "The association with FMO goes back to 2003 when the Dutch company invested in term debt of the two companies." Last year FMO lent $6 million each to the two truck financing companies.