There are very strong media reports that IDFC and Shriram Group are getting merged. This merger is set to create a financial powerhouse worth over USD 10 billion, sources told leading media house CNBC-TV18. A formal announcement is likely to be made on July 8.
There are unconfirmed reports that the entire lending business of holding company Shriram Capital which includes listed entities — Shriram Transport Finance and Shriram City Union Finance — will be merged with IDFC Bank. The unlisted entities under Shriram Capital, which include the life and general insurance companies, will be merged with IDFC.
It must be noted that IDFC Bank, at the time it started out as a new bank a year ago, listed out their need to diversify footprint in the retail business and acquire more retail businesses to diversify from its corporate lineage.
IDFC and Shriram are said to have exclusivity of 90-120 days for merger talks.
While Shriram Group declined any comments on the deal, IDFC said, ‘We remain particularly focused on financial inclusion. At this point there is nothing that requires disclosure.”