Srei Infrastructure Finance hit an upper circuit of 20% at Rs 7.02 after the company said its subsidiary, Srei Equipment Finance, received expression of interest for up to $250 million capital infusion from international private equity funds.
Srei Equipment Finance (SEFL) has received expression of interest (EoI) for up to $250 million capital infusion in the company from US based international private equity (PE) fund Arena Investors and Singapore's Makara Capital Partners.SEFL said that its strategic coordination committee (SCC) chaired by Malay Mukherjee, independent director, will coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management. Meanwhile, Ernst & Young will also be advising the committee on the proposed fund-raising exercise.
SCC is running an independent process for investor identification and has received expression of interest from Arena Investors and Makara Capital Partners. This process is being carried out in parallel to the debt realignment plan. The SCC will engage in discussions with the potential investors to raise fresh capital for the business, which will provide cushion against the pandemic induced stress in the Indian financial services space. The SCC will also be the nodal point for a comprehensive cash flow realignment plan with banks and financial institutions and for all external service providers, including investment bankers, lawyers and consultants.
Arena Investors is a multi-strategy investment firm with $2.2 billion of committed capital. The firm's investment mandate is global, and also unconstrained in terms of asset class and industry. It provides creative solutions for those seeking capital in special situations.
Makara Capital Partners is a global financial services company under the regulatory purview of the Monetary Authority of Singapore. Founded in 2005, Makara Capital specializes in fund management, private equity as well as structuring and financing with a core focus on innovation, infrastructure and energy.
SEFL, a wholly-owned subsidiary of Srei Infrastructure Finance (Srei), is an industry leader in construction and mining equipment financing.
Srei has a presence majorly in the financing of the infrastructure sector and construction and mining equipment (CME), besides the financing of IT, medical and farm equipment and loans against property (LAP).
On a consolidated basis, Srei posted a net loss of Rs 3810 crore in Q3 FY21 as compared to a net profit of Rs 60 crore in Q3 FY20. Total income tumbled nearly 66% to Rs 484.35 crore in Q3 FY21 over Q3 FY20. The company's provisions spiked to Rs 2832 crore in Q3 FY21 from Rs 26.19 crore in Q3 FY20.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU