IDFC-Shriram merger not happening

The bank said in a notification to its shareholders and the exchanges that despite best efforts, IDFC Bank and Shriram Group could not reach a common ground on an agreeable swap ratio. 

The merger plan was stipulated to create a US$12 billion financial behemoth. On July 8, 2017, the two financial institutes agreed to a 90-day exclusivity period for completing the due diligence process, the period was later extended till November 8.  

Shriram City Union was to be merged with IDFC Bank, and Shriram Transport was to be delisted, as per the merger plan. Post the merger, Shriram Transport was to become a wholly-owned subsidiary of the bank. The deal between two entities had faced disagreement from their shareholders. 

Meanwhile, the market participant and shareholders seem to be upbeat about the call-off decision. The stock of Shriram City Union Finance was at Rs. 2,269.95 per share, up by 3.83%, Shriram Transport Finance was trading higher by 0.09% at Rs. 1,181.45, IDFC Limited was trading higher by 1.94% at Rs 62.90 per share, IDFC Bank was trading higher by 1.52% at Rs 56.80 per share, on BSE, during morning hours on Tuesday.