IDFC duo gains up to 4%; Shriram group stocks mixed on merger buzz

NEW DELHI: Shares of IDFC Bank and IDFC jumped over 4 per cent while those of Shriram group’s Shriram City Union and Shriram Transport turned mixed on reports the two groups are in talks to combine all or some of their businesses in a mega merger that could straddle traditional banking, consumer lending and truck financing, apart from providing billionaire Ajay Piramal an entry into a highly regulated industry.

The listed entities related to the news were unable to confirm or deny the reports.

In a filing to BSE, IDFC Bank said, “We keep evaluating opportunities from time to time and should anything concrete fructify, we will inform the exchanges as appropriate. At this point, there is nothing that can be disclosed.”

Despite the clarification, IDFC Bank shares jumped 4.18 per cent to hit a high of Rs 66 on BSE. IDFC rose 2.72 per cent to hit a high of Rs 62.25. On the other hand, Shriram City Union Finance was trading 1.86 per cent lower at Rs 2,473. Shriram Transport was up 0.46 per cent at Rs 1,112.95

The board of Shriram Capital, the holding company for the consumer lending arm Shriram City Union and truck financing subsidiary Shriram Transport Finance, will meet on Saturday to discuss a proposal to merge with IDFC Bank, said two people familiar with the development. Negotiations are in an advanced stage, but there is no certainty that the transaction would be completed, they added.