Mar 06, 2017 05:40 PM IST | Source: CNBC-TV18

SREI Infra may buy promoter stake in Rs 4,060-cr Dahej port

Speaking to CNBC-TV18, DK Vyas, CEO of SREI Infra, said the acquisition would be part of efforts to recover its loan from Sterlite Port, which is promoted by Sandesara Group, and developing the greenfield port.

SREI Infra is planning to acquire the Sandesara Group's stake in the Rs 4,060-crore port being developed in Dahej, Gujarat, as part of efforts to recover its loan, said DK Vyas, the company's Chief Executive Officer.

Sterling Port promoters hold close to 74 percent equity in the port project, with the remaining stake held by Sterling Biotech, the group’s flagship company.

Speaking to CNBC-TV18, Vyas said SREI Infra is a lender to Sterlite Port, which is promoted by Sandesara Group, and developing the greenfield port.

Vyas said the company's exposure to the port is Rs 50-60 crore. SREI Infra thinks it is a good asset and finding an investor is among the solutions being touted.

"As the lender, we are looking at options to come out of the problem," Vyas said.

Chetan Sandesara, Promoter of the Sandesara Group, had earlier said the company was planning to sell its majority stake to SREI and remain a minority shareholder through the 26 percent stake held by group company Sterling Biotech. 

"We see a strong partner in them who can propel the growth of the Dahej port," Sandesara said.

Around Rs 6,000 crore in loans advanced to several companies of Vadodara-headquartered Sandesara Group have turned bad.

Vyas said the equipment financing business was going well even as infrastructure sector was picking up especially in road and irrigation. 

The company had filed a Draft Red Herring Prospectus (DHRP) with the country's markets regulator, and hopes to launch an Initial Public Offering (IPO) for its road business sometime in the next financial year.

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