Shriram Group's two subsidiaries to come under IDFC Limited
Both IDFC and Shriram Group will be entering into a 90-day exclusive merger talks.
In a meeting held on Saturday, the board of directors of IDFC Bank have given their in-principle nod to evaluate a strategic combination of relevant financial services of the Shriram Group with IDFC Group.
IDFC Bank in a BSE filing said, "The board approved entering into a confidentiality exclusivity and standstill agreement to evaluate a potential combination of certain business and subsidiaries of the Shriram Group with IDFC Group."
It further added, "The agreement primarily provides for a mutually agreed exclusivity period for due diligence and discussions between the relevent parties in relation to the potential combination."
Both IDFC and Shriram Group will be entering into a 90-day exclusive merger talks.
In the conference, it was mentioned that two groups businesses to come under IDFC Limited. Shriram Capital will become IDFC's subsidiaries, meanwhile Shriram AMC to merge with IDFC AMC as a listed company under IDFC.
Shriram Transport will remain standalone unit under the merger.
At present, Ajay Piramal the chairman of Shriram Capital holds 20% stake in the company. Piramal also holds few stakes in some of the Shriram Group's subsidiary.
Post approval, both the groups expect the merger to take atleast 12 months for completion.
This merger is expected to create over Rs 63,000 crore business in the non-banking financial sector.
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06:34 PM IST