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 country.

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

the boards.

“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

Piramal said.

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.