The Srei Group announced that it received an expression of interest for capital infusion from New York headquartered private investment firm Cerberus Global Investments B.V.
The group however did not disclose the committed size of infusion.
Cerberus joined two other prospective investors for infusing capital into Srei Equipment Finance Ltd (SEFL), a wholly owned subsidiary of Srei Infrastructure Finance.
Earlier in the month, the US-based Arena Investors LP and Singapore's Makara Capital Partners showed interest to invest up to $250 million.
Established in 1992, Cerberus has about $53 billion under management across multiple strategies. It has an advisory office in Mumbai, besides offices in Tokyo, Hong Kong, Singapore and other locations.
An official with SEFL said discussions with both Arena Investors and Makara Capital are on. "We are in dire need of capital. The more is merrier," he said.
"The company's strategic coordination committee, chaired by independent director Malay Mukherjee is currently engaged in discussions with the private equity funds to bring capital into the business," the group said in a press statement.
Ernst & Young will be advising the committee on the proposed fund raising.
Srei is looking to raise capital as high provision to cover credit risks has depleted it, people familiar with the matter said. The lender is struggling to meet repayment obligations due to cash-flow problems since collection and realisation from its borrowers took a hit during the pandemic.
Last year, Srei Infrastructure Finance transferred its businesses, assets and liabilities to Srei Equipment Finance in a slump sale.
The group however did not disclose the committed size of infusion.
Cerberus joined two other prospective investors for infusing capital into Srei Equipment Finance Ltd (SEFL), a wholly owned subsidiary of Srei Infrastructure Finance.
Earlier in the month, the US-based Arena Investors LP and Singapore's Makara Capital Partners showed interest to invest up to $250 million.
Established in 1992, Cerberus has about $53 billion under management across multiple strategies. It has an advisory office in Mumbai, besides offices in Tokyo, Hong Kong, Singapore and other locations.
An official with SEFL said discussions with both Arena Investors and Makara Capital are on. "We are in dire need of capital. The more is merrier," he said.
"The company's strategic coordination committee, chaired by independent director Malay Mukherjee is currently engaged in discussions with the private equity funds to bring capital into the business," the group said in a press statement.
Ernst & Young will be advising the committee on the proposed fund raising.
Srei is looking to raise capital as high provision to cover credit risks has depleted it, people familiar with the matter said. The lender is struggling to meet repayment obligations due to cash-flow problems since collection and realisation from its borrowers took a hit during the pandemic.
Last year, Srei Infrastructure Finance transferred its businesses, assets and liabilities to Srei Equipment Finance in a slump sale.
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1 Comment on this Story
 | Amit Sharma1 hour ago Srei promoter is a huge FRAUD .. Good that he didn't get a Banking license |