IDFC-Shriram Kickstart 90-Day Merger Talks

Chennai-based Shriram Group and IDFC on Saturday announced exploratory merger talks between the two groups during a 90 day time period. As per the proposed terms, Shriram City Union Finance and Shriram Capital will be merged with IDFC Bank.

Whereas, Shriram Transport Finance Company will continue to operate as a 100% subsidiary of IDFC and ultimately be delisted post the merger. Similarly, the insurance business of Shriram will be transferred to IDFC, with IDFC holding close to 75% in both life and general insurance businesses.

The merger is still subject to several approvals from IRDA, SEBI, RBI, NSE and BSE and would take around 12 months for internal and regulatory approvals.

Shriram Capital chairman, Ajay Piramal on Saturday disclosed that it will be an arrangement for 90 days to jointly explore merger options, also adding that no valuations and transactions have taken place.

Post the merger, IDFC’s mutual fund arm would be integrated with Shriram Asset Management and also may be listed, IDFC Bank MD and CEO Rajiv Lall said.

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