IDFC, Shriram Group shares mixed on merger buzz

Shares of IDFC and Shriram groups ended mixed on Thursday amid speculation of a merger of their entities to create a $10 billion company.

There were media speculations earlier in the day that Shriram Transport Finance and Shriram City Union Finance were to be merged with IDFC Bank, while Shriram Capital’s Life and General insurance business will merge with IDFC.

Shares of Shriram Transport Finance inched higher by 1.21 per cent to Rs 1,107, while Shriram City Union Finance fell 1.21 per cent to Rs 2,515.

On the other hand, IDFC shares rose 0.25 per cent to Rs 60.60 and those of IDFC Bank gained 1.69 per cent to Rs 63.35.

IDFC Bank clarified to media that it was unable to confirm or deny the news reports.

“We keep evaluation opportunities from time to time and should anything concrete fructify, we will inform the exchanges as appropriate. As this point, there nothing that can be disclosed,” IDFC Bank said in a regulatory filing.