Shriram City, IDFC Group stocks end with gains

Shares of Shriram City Union Finance and IDFC Group companies surged up to 5.2 per cent today after the merger talks between them were called off.
The scrip of Shriram City soared 5.23 per cent to settle at Rs 2,300.65
on BSE. During the day, it jumped 6.25 per cent to Rs 2,323.
The stock of IDFC went up 2.03 per cent to end at Rs 62.95 and IDFC Bank gained 1.25 per cent to settle at Rs 56.65.
Shares of both IDFC and IDFC Bank had opened the day on a weak note but recovered later and ended with gains.

After over three months of negotiations, the merger talks between IDFC Group and Shriram Group were called off yesterday as the two were unable to reach a common ground on the share swap ratio.

Infrastructure lender IDFC, which entered the banking space in 2015, and Piramal Group's financial services firm Shriram entered into Confidentiality, Exclusivity and Standstill (CES) agreement on July 8 for a merger to create the largest retail-focussed bank in the country.
"This is to inform you that despite best efforts, IDFC Group and Shriram Group have not been able to reach common ground on a mutually acceptable swap ratio for the merger," IDFC Ltd said in a regulatory filing.

Following this, it said, both the parties have agreed to call off discussions as a "potential merger and the exclusivity period pursuant to the CES Agreement entered into between the concerned parties stands terminated with immediate effect".