Connect with us




Main

Srei embarks on capital augmentation scheme and listing of equipment finance business

download

New DelhiJanuary 212019Srei Infrastructure Finance Limited (“Srei”), one of India’s largest holistic infrastructure institutions, today announced that it has decided to augment the capital of both its infrastructure finance and equipment finance businesses, which will facilitate the businesses in maintaining and strengthening their current leadership positions further.

The move will result in listing of the company’s equipment finance business through a composite scheme of arrangement and amalgamation (“Scheme”) and give shareholders of Srei an opportunity to directly participate in the high growth equipment finance sector.

The board of directors of Srei at a meeting held here today approved the Scheme, which is subject to regulatory, statutory and other necessary approvals.

Commenting on the development, Mr. Hemant Kanoria, Chairman and Managing Director, Srei, said: “In our journey of three decades, we have been creating significant value for our shareholders. Today’s decision will lead to substantial increase in net shareholders’ fund and allow shareholders of Srei to directly hold shares of both infrastructure finance and equipment finance businesses. The move is value accretive for our shareholders as they will have monetizable assets in form of listed shares of both the businesses.

The proposed capital augmentation scheme is expected to further infuse around Rs 500 crore in our equipment finance business and will pave the way for multi-fold growth in its revenue and profit. Global and domestic investors will also be able to take advantage of the opportunities in the high growth equipment finance sector by directly investing in our equipment finance business.”

The growth in the infrastructure space, propelled by the government’s substantial budgetary allocation in road, irrigation, mining, railways, ports, affordable housing and other infrastructure sub-sectors, has improved the growth prospects of infrastructure finance and equipment finance businesses. In last few years, there has been significant growth in sales of construction, mining and allied equipment (“CME”) and the industry expects the demand to remain strong in coming years. This has made the capital augmentation programme of both infrastructure finance and equipment finance businesses pertinent.

Latest News

News8 hours ago

UP RERA Approves Six New Real Estate Projects Worth ₹176.28 Crore

Lucknow/Gautam Buddh Nagar, October 13, 2025: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has approved six new real...

News8 hours ago

CapitaLand Investment, Listed and Private Funds, Strengthen ESG Leadership Positions in 2025 GRESB Assessment

New Delhi, October 13, 2025: Global real asset manager CapitaLand Investment Limited (CLI), its listed REITs and business trusts, and...

News8 hours ago

EQBAC Unveils Dollar-Denominated Model Portfolios for India Inbound Investment Through GIFT City

Mumbai, October 13, 2025: Global investment platform EQBAC has launched dollar-denominated model portfolios for Non-Resident Indian investors through GIFT City,...

News9 hours ago

CP67 Mall Hosts Kids’ Entrepreneurial Exhibition ‘Kidspreneur’ in Association with Prepright

Chandigarh, October 13, 2025: CP67 Mall, Mohali, in collaboration with Prepright, hosted ‘Kidspreneur’, a one of its kind entrepreneurial exhibition...

News9 hours ago

Arnya Real estates Fund Advisors Commits ₹415 Cr in Investments Across Residential Projects

New Delhi, October 13, 2025: Real estate-focused investment management firm Arnya Realestates Fund Advisors has announced that it has committed...

News9 hours ago

Concord Control Systems Deepens Partnership with Progota, Boosting Stake to 46.5%

Lucknow, October 13, 2025: Manufacturer of embedded electronic systems and critical electronic solutions Concord Control Systems Limited has said that...

Trending