Financial Merger: Amalgamation of ECL Finance with Edelweiss Retail Finance Complete to Boost MSME Lending

ECL Finance Limited (ECLF), a leading non-banking financial company (NBFC) on Tuesday announced the successful completion of its amalgamation with Edelweiss Retail Finance Limited (ERFL), a retail-focused NBFC specialising in loans against property and business loans for SMEs. The merger follows the approval of the National Company Law Tribunal (NCLT), Mumbai Bench, through its order dated September 12, 2025.

Amalgamation of Edelweiss Retail Finance With ECL Finance

The Scheme of Amalgamation is effective from September 30, 2025, with the Appointed Date set as October 1, 2024. The scheme had earlier been approved by the respective Board of Directors of both ECLF and ERFL on May 30, 2024.

Since then, the proposal has received the required regulatory clearances and stakeholder approvals, including from the Stock Exchanges, Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), and NCLT.

Key Benefits of Merger

The amalgamation is expected to deliver multiple strategic and operational advantages. Among the key rationale and benefits of the merger are:

Consolidation and Capital Efficiency: The merger reduces the number of NBFC entities within the Edelweiss group, streamlines operations, and ensures better utilisation of capital under a unified governance framework.

Synergies and Stakeholder Value: The consolidation is expected to create significant business synergies, enhance customer offerings, and generate greater value for shareholders and stakeholders.

Sharpened MSME Focus: The pooling of resources and expertise from both entities will enhance ECLF's ability to support MSME borrowers, aligning with the company's long-term lending strategy.

Operational Efficiency: The integration will help achieve economies of scale, improve cost efficiency, and enhance organizational performance.

Know About ECL Finance Limited

ECL Finance Limited is a public limited company incorporated on July 18, 2005. It is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Institution (NBFC) categorized in the Middle Layer under the RBI's Scale-Based Regulation framework (2023). The company offers a range of secured credit solutions and has a growing focus on supporting India's MSME sector through responsible, technology-driven lending practices.

Financial Highlights of ECL Finance

As of June 30, 2025, ECL Finance Limited reported total assets under management (AUM) of Rs 1,133 crore, with a gross loan book of Rs 837.94 crore and a net loan book of Rs 807.30 crore. In Q1 of FY26, the company recorded revenue of Rs 151.50 crore and a profit after tax (PAT) of Rs 4.79 crore.

The company maintains a strong presence across India, operating 26 branches and working with more than 800 agents and channel partners, in addition to several banking partners, as of June 30, 2025.

Mr. Rashesh Shah, Chairman of ECL Finance said, "The amalgamation of Edelweiss Retail Finance with ECL Finance is a significant step in consolidating our lending businesses. This consolidation enables capital optimization, sharpens our focus on MSME lending, and enhances value for customers and stakeholders."