Shriram-IDFC deal to give investors exit option

Shriram Group, which has assets under management of Rs 1,00,000 cr, has been a darling of investors

Shriram Group’s announcement on its ongoing talks for a potential merger of its financial services businesses under Shriram Capital with IDFC Ltd and IDFC Bank could be a good news for the private equity (PE) and other investors who are looking for a possible exit in future.

Shriram Capital, an unlisted company, has investors including TPG Capital. TPG Capital invested $158 million in April 2010. Once the proposed merger with listed companies IDFC and IDFC Bank is completed, investors will have more liquidity and it will also give them exit route, which is one of the major attraction for the