IDFC-Shriram merger deal likely to be reworked amid opposition from select shareholders, says Ajay Piramal

Mumbai: Piramal Enterprises chairman Ajay Piramal on Wednesday said the deal structure of the proposed merger of Shrirm Group and infra lender IDFC is still being looked at.

There was a media report that the structure of the IDFC and the Shriram Group merger is being reworked due to pressure from a section of shareholders.

Ajay Piramal, chairman of Piramal group

Ajay Piramal, chairman of Piramal group

When asked about the media report, Piramal, who is also the chairman of Shriram Capital, said, "We will see. It is all about the opposition of shareholders. We are the largest shareholders and we will not do anything which is not in the interest of the shareholders. We have a vested interest to see that. Even otherwise Piramal has always stood by that all shareholders get the most appropriate deal.

"We have announced in August earlier that how we will explore ways to see if a merger works out on the basis of what the RBI approves and on the basis of what valuations are. So, we are still looking at it," he told reporters.

In July, IDFC and the Piramal Group-backed financial services major Shriram Group had agreed to merge and create the largest retail-focused bank in the country.

The managements of the of two groups have 90-day period, since July, to complete due diligence and explore merger. If all goes well, within 12 months a formal merger will take place.

Updated Date: Sep 28, 2017 11:13 AM

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