Shriram group to merge three companies

Chennai: After its earlier announcement, the board of three Shriram Group companies have decided to consider a preferential allotment of up to three crore equity shares to Uno Investment, a wholly owned subsidiary of ChrysCapital III, LLC. The Rs10 share will be allotted for cash at Rs35 per share.

The board will also consider at its meeting on February 16, 2005, the restructuring plans of the companies.

According to the proposal, Shriram Investments Limited (SIL) will issue up to 1,24,91,000 equity shares of Rs10 each and up to 27,49,000 warrants into equity shares of Rs10 each. The warrants will be convertible at the option of the holder within 18 months from the date of allotment for cash on preferential basis at Rs35 per share. The conversion of the warrants would be at the rate of one equity share for every warrant.

Similarly Shriram Transport Finance Company.Ltd (STFC) will issue 1,34,79,000 equity shares of Rs10 each and up to 29,66,000 warrants at the same terms and conditions.

On the other hand Shriram Overseas Finance Ltd (SOFL) will issue 43,69,000 equity shares of Rs10 each for cash on preferential basis at Rs21 per share.

The group will soon merge these outfits into one entity to operate in the truck financing segment.