On July 8, IDFC Bank and the Shriram group announced that they have entered into an exclusive arrangement for 90 days to explore the possibility of a merger. As per the proposed arrangement, Shriram City Union Finance (SCUF) will be merged with IDFC bank, while Shriram Transport Finance Company (STFC) will become a subsidiary of IDFC and will be subsequently delisted. The other businesses (life and general insurance, AMC, stock broking) will also become subsidiaries of IDFC.
The proposed deal got a thumbs-down from the market with STFC and SCUF declining 7.57% and 8.48% and IDFC Bank losing 4.87% (as on July 2017), since the deal was announced.
The merger will give IDFC Bank, which has been struggling to grow its retail