The process leading to the merger of the Shriram Group and IDFC Ltd. financial services business is complex and will take time to complete, said R. Thyagarajan, founder of Shriram Group.
Given the complexity of the exercise, he said that “progress will be slow.” He put things into perspective by pointing out many issues in the merger process. The discussions were on many points, he said.
Both Shriram and IDFC participated in four to five businesses and with some equipment listed and not listed each under its fold, the exercise in sorting all the flaws in the merger process was intended to be elaborated, he added. The process had to obtain authorization from multiple regulators, he added. Although Mr. Thyagarajan does not have an official position in the Shriram group, he is the face of the group for clients and clients alike.
“Investing in Investors”
Since both entities had multiple investor partners, the exercise should necessarily involve the stakeholder community in an equitable and satisfactory manner, he said.
The merger would lead to the emergence of a “formidable entity,” he said. Admitting that there might be resistance along the way, he said, however, the merger process is certainly in.
