The process leading up to the merger of the financial services business of the Shriram Group and IDFC Ltd. is complex and will take a while to complete, said R. Thyagarajan, founder, Shriram Group.
Given the complexity of the exercise, he said the “progress will be slow.” He put things in perspective by pointing out to many issues in the merger process. Discussions were on many points, he said.
With both Shriram and IDFC engaged in four to five businesses and having a few listed and non-listed outfits each under their fold, the exercise in sorting out all the glitches in the merger process was bound to be an elaborate one, he added. The process had to get clearance from multiple regulators, he added. Even though Mr. Thyagarajan does not hold an official position in the Shriram group, he is the face of the group for customers and clients alike.
‘Onboarding investors’
Since both entities had multiple investment partners, the exercise had to necessarily involve on-boarding the community of stakeholders in an equitable and satisfactory manner, he pointed out.
The merger would result in the emergence of a ‘formidable entity’ he said. Admitting there could be resistance on the way, he said that, nevertheless, the ‘merger process is certainly on.’