Srei Infrastructure Finance (Srei) and its wholly-owned subsidiary Srei Equipment Finance (SEFL) board of directors announced that it further received an expression of interest ("EOI") for capital infusion from Cerberus Global Investments B.V.
Also, SEFL has received EoIs for capital infusion of about USD 250 million from US-based multi-strategy investment firm Arena Investors LP and Singapore-based global financial services company Makara Capital Partners.
Further, SEFL has proceeded with discussions with both Arena Investors and Makara Capital and the company's Strategic Coordination Committee ("SCC"), chaired by Independent Director Malay Mukherjee, is currently engaged in discussions with the private equity ("PE") funds to bring capital into the business.
Notably, the SCC has been running an independent process for investments in SEFL and many large players have evinced interest. The proposed capital infusion, which is being carried out in parallel to the company's debt realignment plan, is expected to provide a cushion against the pandemic induced stress in the Indian financial services space. Ernst & Young ("E&Y") is advising the SCC on the fundraising exercise.
SEFL plans to repay its loans through the recoveries and hence the scheme was submitted to all the creditors to realign the repayment schedule with expected collections from customers. The lenders also have the flexibility to make necessary amendments to the proposed schemes.
At around 1.53 pm, Srei was trading at the upper circuit of Rs7.35 per piece surging by 19.9% on Sensex.