The Srei Equipment Finance, a hundred per cent subsidiary of Srei Infrastructure Finance, will dilute 25 per cent of its equity by way of fresh issue of shares and offer for sale (OFS) by the parent firm.
"The board of the company decided to dilute 25 per cent stake by issuing fresh shares and OFS by Srei Infrastructure Finance", CMD of Srei Equipment Finance Hemant Kanoria said.
He said it was the right time to get the company listed as equipment financing business was poised for good growth. The share dilution is expecting to garner anything between Rs 1800 crore to Rs 2200 crore, depending upon the valuation, he told reporters here today.
The proceeds of the issue would be utilised for growth of the company. The exact proportion between OFS and fresh issue would be decided later, but it would be within 25 per cent, he said.
Kanoria said that that the NPA level of the company was improving and in terms of market share, it was clearly the market leader with about 35 per cent share.
The company had formed an IPO committee to take all decisions relating to appointment of investment bankers, advisors among others. The entire process would be wrapped up in near future, he said.
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