The proposed merger between IDFC Ltd. and Shriram Group hit a roadblock after a group of IDFC investors raised concerns about the deal, including the share-swap ratio, The Economic Times of India reported Oct. 16, citing "people directly aware of the matter."

The investors, who hold a 6% to 7% stake in IDFC, expressed concerns about the company's ability to run the truck-financing business of Shriram Group. They also demanded a better share-swap ratio as the current offer gave Shriram Group and Ajay Piramal, the chairman of Shriram Capital, an upper hand in IDFC Bank Ltd., the people aware of the matter said.

IDFC and Shriram Group are in discussions for a transaction that would involve a merger of IDFC Bank with Shriram Group units, Shriram City Union Finance Ltd. and Shriram Transport Finance Co. Ltd. The two companies have already extended the deadline for merger talks to Nov. 8.

A formal decision on the merger is expected in the coming days. IDFC did not offer any comments when contacted by the publication, while Piramal declined to comment.