The USD 12 billion proposed merger between IDFC and Shriram Group has been scrapped after both parties failed to find common ground on valuations. In an interview to CNBC-TV18, Digant Haria, AVP-Research at Antique Stock Broking shared his views and readings on the same.
IDFC got the license in 2014 along with Bandhan Bank. Bandhan build a good liability franchise but IDFC failed in creating a great retail franchise and that is why they were scouting for opportunities, said Haria.
He further said that Shriram Group deal was one of those opportunities which they were looking at.
Talking about stocks, he said with the deal called off the biggest beneficiary will be Shriram Transport Finance Corporation and second inline would be Shriram City Union Finance. Therefore, we see a lot of upside in these stocks, he added.
Haria further added that Shriram Transport is one of our top pick because the commercial vehicle cycle has picked up strongly in the last three months especially after goods and services tax (GST).
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