Srei Infrastructure arm to hit capital markets to raise Rs. 1,800-2,000 crore
Srei Equipment Finance (SEFL), a wholly-owned subsidiary of Kolkata-based Srei Infrastructure Finance, has announced plans for diluting up to 25 per cent of its equity capital through an initial public offering.
The SEFL board, at its meeting on Thursday, decided to constitute an IPO committee to take all decisions relating to the IPO, including appointment of advisors, investment bankers and legal counsels. The IPO could hit the market by the end of this financial year; it plans to raise Rs. 1,800-2,000 crore.
According to Hemant Kanoria, Chairman & Managing Director, Srei, the exact proportion between OFS and fresh issue would be decided later, but it would be within 25 per cent.
“We hope to hit the market by February or March this fiscal,” he said.
The IPO proceeds would be utilised to fund its equipment finance business, which has been growing at 20-22 per cent on a year-on-year basis. The company holds roughly 35 per cent market share in equipment finance business.
SEFL, which provides financing for construction and mining equipment, IT infra equipment as well as healthcare and farm equipment, closed the first quarter of this financial year with Rs. 23,453 crore of assets under management, registering a 20 per cent growth over the same quarter of the previous year.