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Shriram Investments Ltd to merge with Shriram Transport Finance Company Ltd. Shriram Group, a leading conglomerate in the Indian financial services segment, at a board meeting today announced the decision to merge its flagship companies, Shriram Investments Ltd. (SIL) and Shriram Transport Finance Company Ltd. (STFC), subject to the necessary approvals from High Court, Chennai. A share exchange ratio of 1:1 has been approved, based on the recommendation and valuation by Ernst and Young. On merger, shareholders of SIL will be entitled to receive 1 equity share of STFC for every one equity share of SIL held by them. The Board of Directors of STFC, SIL and Shriram Overseas Finance Ltd (SOFL) also decided to implement an employee stock option scheme (ESOS), covering approximately 500 employees of all three companies. ESOS is usually granted to senior employees, whereas Shriram's ESOS is a unique scheme that will be granted mostly to the employees at the branch level of STFC, SIL and SOFL.
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