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IDFC-Shriram Group merger: 4 top hurdles the mega union will run into

IDFC-Shriram Group merger: 4 top hurdles the mega union will run into

Finance
New Delhi: The proposed merger of IDFC and the Shriram Group will create a financial giant with a market value of at least Rs 72,000 crore that will have businesses as diverse as motorcycle credit and lending for power projects. Both the groups have three months to structure the deal and get approvals. But the complex, multi-layered deal is likely to run into various regulatory hurdles. The companies of both the groups fall under various regulators such as the Insurance Regulatory Development Authority of India (IRDAI) and the Reserve Bank of India (RBI) which will require multiple regulatory approvals. Below are a few obstacles the two groups will have to overcome: Piramal group stakePiramal Group, which holds stakes in various Shriram Group companies, will end up owning a considerab...