News

CCI Approves Amalgamation of SHPL and CIFCPL into SMPL.

Banking & Finance | Dated: 21 Feb 2025

In February 2025, the Competition Commission of India (CCI) approved the amalgamation of Svatantra Holdings Private Limited (SHPL) based in Mumbai, Maharashtra, and Chaitanya India Fin Credit Private Limited (CIFCPL) based in Bengaluru, Karnataka, a Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI), into Svatantra Microfin Private Limited (SMPL), an NBFC-MFI based in Mumbai, Maharashtra.

🎯 Key Highlights:

- The amalgamation will occur according to the Scheme of Amalgamation agreed upon by SHPL, CIFCPL, SMPL, and their respective shareholders, with the approval from the boards of directors.
- As a result of this merger, Svatantra Micro Housing Finance Corporation Limited (SMHFCL), a Non-Banking Financial Company Housing Finance Company (NBFC HFC) (Middle Layer) based in Mumbai, Maharashtra, will become a wholly-owned subsidiary of SMPL.
- SHPL is involved in investing in equity shares, preference shares, and other securities. It is an unregistered Core Investment Company as per the Core Investment Companies (Reserve Bank) Directions, 2016.

💡 Other Important Facts:

(i) CIFCPL and SMPL provide microfinance and personal loans to low-income individuals and households in rural and semi-urban areas, while SMHFCL offers secured housing loans, loans against property, and loans to corporations/institutions for construction and real estate projects.
(ii) NS Blackwater and JFE Steel BW are newly formed special-purpose vehicles created for the proposed combination, while BW Coal Mine imports and supplies coking coal.
(iii) The acquisition aligns with India's growing demand for high-quality coking coal, a key raw material in steel production.

📚 Test Your Knowledge:

Which organization Recently approved the amalgamation of SHPL and CIFCPL into SMPL?

Correct Answer: CCI

🚀 Quick Recap:

About Competition Commission of India (CCI)

Chairman : Ravneet Kaur
Headquarters : New Delhi