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Shriram Capital, IDFC boards enter into 90-day exclusive talks for merger

LiveMint logoLiveMint 08-07-2017 PTI

Boards of Shriram Capital Ltd and IDFC Ltd on Saturday entered into 90-day exclusive talks to merge their businesses and get regulatory nods.

“I am very happy to announce that boards of both the companies have ventured into an agreement for 90 days to get into the merger,” Shriram Capital Chairman Ajay Piramal said during a press conference.

Shriram Transport Capital will remain a separate entity post merger, says IDFC’s Rajiv Lall. All other operating companies of Shriram Group to merge into the bank and create a Rs20,000-crore retail book.

Founded in 1974 by Ramamurthy Thyagarajan, A.V.S. Raja and T. Jayaraman, the Shriram group has 24 operating companies with more than 60,000 employees and assets under management (AUM) in excess of Rs.90,000 crore. It is now controlled by billionaire Ajay Piramal.

IDFC was founded in 1997 by a group of public and private sector financial institutions and began as a lender for infrastructure projects, later diversifying into merchant banking, asset management and private equity among others. The company went public in 2005 and in 2014 received approval from Reserve Bank of India to set up a new private sector bank—IDFC Bank.

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