Srei Infrastructure Finance today said the board of its wholly-owned subsidiary Srei Equipment Finance (SEFL) has approved raising up to Rs 2,000 crore through an initial public offer (IPO).

"The Board of Directors of SEFL ... has approved, subject to approval of its shareholders, marketing conditions and receipt of requisite approvals from statutory and other authorities, an IPO of its equity shares by way of issue of fresh equity shares up to Rs 2,000 crore," Srei Infrastructure Finance said in a regulatory filing.

The SEFL's board also approved participation by the existing shareholders of Srei Infrastructure Finance in relation to such number of equity shares held by it which are eligible for offer for sale.

"The fresh issue size shall be reduced to the extent of participation in offer for sale by existing shareholders, if any, as may be decided by the Board of Directors of SEFL or any duly constituted committee thereof, in its absolute discretion in consultation with the book running lead managers appointed in relation to the IPO," it added.

Shares of Srei Infrastructure Finance were trading 1.12 per cent lower at Rs 119.70 on BSE.