IDFC and the Shriram Group have agreed to finalise within 90 days the merger of financial services business of the two groups that will create a financial supermarket with offerings from motorcycle credit to lending for multi-billion dollar power projects.
IDFC Bank managing director and chief executive Rajiv Lall called the proposed merger a “marriage made in heaven” while the founder chairman Deepak Parekh said that IDFC gets “readymade branches” and “hope the marriage happens” amid likely regulatory obstacles.
All the operating businesses of the two groups will come together under IDF. The retail consumer centric business of the holding company Shriram Capital – Shriram City Union Finance – will be merged into IDFC Bank. The transport finance business will remain a standalone non-banking finance company that would become a subsidiary of IDFC Limited. The share swap ratio and other details of the merger would be worked out in the next 90.
Full Content: The Hindu
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