A look at the latest addition to the Nifty50

Initially a transport finance company, Shriram Finance now counts itself among the largest retail NBFCs in India. Part of the Shriram Group, it boasts an impressive pan-India network of over 3,000 branches and AUM (assets under management) of nearly Rs 2 lakh crore as of December 2023. The company has recently come under the limelight as NSE (National Stock Exchange) announced that Shriram Finance will be included in the Nifty50 index from March 28, 2024, replacing UPL. For the uninitiated, the Nifty50 represents the weighted average of the 50 largest Indian companies listed on the NSE. Let's explore Shriram Finance's journey from its inception 45 years ago to its inclusion in the Nifty 50 index today. A background Shriram Finance was established in 1979 as Shriram Transport Finance Company by R Thyagarajan. It aimed at providing commercial vehicle financing services to the lower-income strata, particularly those with minimal to no credit history and small truck owners (those owning up to 2-3 trucks). Gradually, it carved out a niche for itself in this segment. The company got a significant boost in 1990 when Tata Motors and Ashok Leyland made strategic equity investments, helping it expand its presence nationwide. More than a decade and a half later, in 2006, the company reported a profit after tax (PAT) of over Rs 100 crore for the first time since its inception. The right steps at the right