New Delhi, Jul 10 (PTI) Shares of IDFC and Shriram Group
of companies ended up to 5.7 per cent lower today after they
agreed to merge and create the largest retail-focused bank in
The scrip of IDFC tumbled 5.68 per cent to close at Rs
56.50 on BSE. During the day, it lost 6 per cent to Rs 56.25.
Shares of IDFC Bank, however, rose by 0.69 per cent to Rs
65.20 after earlier falling 3.32 per cent to Rs 62.60.
The scrip of Shriram City Union Finance tanked 5.56 per
cent to close at Rs 2,349.20. Intra-day, it declined by 7 per
cent to Rs 2,312.80.
Shares of Shriram Transport Finance also fell by 3.33 per
cent to end at Rs 1,054.35 after earlier plunge of 7.39 per
cent to Rs 1,010.
IDFC, which entered into banking late 2015, and the
Piramal Group-backed financial services major Shriram Group on
Saturday agreed to merge.
“The boards of Shriram Group and IDFC have entered into
an exclusivity arrangement for 90 days to jointly explore an
opportunity for a merger. No transaction has been approved by
“Now, diligence will take place, we will discuss on the
valuations and the respective boards will then meet and then a
proposal will be made. If more time is needed then will extend
the exclusivity period by another 60 or even 90 days,” Ajay
Currently, Shriram Group has a loan book of over Rs
80,000 crore, while IDFC and its banking arm together have
loan book of over Rs 60,000 crore. The total assets of the
merged entity will cross Rs 9 trillion.
IDFC owns 52.86 per cent in IDFC Bank, which is the
seventh-largest private lender in the country now. Piramal
owns 20 per cent in Shriram Capital and 10 per cent each in
both Shriram Transport and Shriram City Union.
This is published unedited from the PTI feed.