Shares of Shriram City Union fell nearly 3 percent on Friday after SVL Ltd, the holding company of Shriram group’s non-financial business, was admitted into the bankruptcy process by the National Company Law Tribunal.
According to a Credit Suisse note, the company would lose control over assets and operations to interim resolution professional (IRP). Umesh Revankar, managing director and CEO of Shriram Transport Finance, spoke to CNBC-TV18 about the recent development.
“This is between one of the subsidiaries of SVL and the customer of that company. There is some business dispute and the amount should be very small. I think the original amount is around Rs 6 crore. So that much I can tell you. More details are available in National Company Law Tribunal (NCLT), you can refer that because the full information is available in the public domain,” Revankar said.
“SVL was able to handle the dispute, the original amount is very small. I don’t think it has anything to do with our guarantee to SVL. That will be addressed by SVL themselves,” he added.
“Any escalation in fuel cost will be passed on to the customer. So I don’t think there will be any big challenge on increase of fuel price. Our truckers would be able to pass it on to the end customers,” said Revankar.
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