homemarket Newsstocks NewsSrei Infrastructure Finance shares hit 20% upper circuit as arm gets EoI for $250 mn capital infusion

Srei Infrastructure Finance shares hit 20% upper circuit as arm gets EoI for $250 mn capital infusion

The shares of Srei Infrastructure Finance were locked in a 20 percent upper circuit after the company’s subsidiary Srei Equipment Finance received expression of interest for up to USD 250 million capital infusion from international PE funds.

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By CNBCTV18.com Apr 9, 2021 10:11:49 AM IST (Published)

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Srei Infrastructure Finance shares hit 20% upper circuit as arm gets EoI for $250 mn capital infusion
The shares of Srei Infrastructure Finance were locked in a 20 percent upper circuit after the company’s subsidiary Srei Equipment Finance received expression of interest for up to USD 250 million capital infusion from international PE funds.

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The international private equity funds are US-based Arena Investors LP and Singapore’s Makara Capital Partners.
“The company’s 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,” Srei Infrastructure Finance said in a regulatory filing on Thursday.
Arena Investors LP is a multi-strategy investment firm with USD 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 (MAS). 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.
“The SCC is running an independent process for investor identification and has received expression of interest from Arena Investors LP and Makara Capital Partners. This process is being carried out in parallel to the debt realignment plan,” the company said.
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, it added.
Srei Equipment Finance writes to bondholders, assures repayment of money
Additionally, Srei Equipment Finance also assured its bondholders that their money will be repaid and said the collateral against the loans given by the company together with the receivables are sufficient to cover all its liabilities.
The company also said it has proactively approached the NCLT proposing a repayment plan for loans.

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