SREI Infra shares hit 20% upper circuit on receiving expression of interest for $250 million capital infusion
The company’s Strategic Coordination Committee will be concluding discussions with the PE investors to bring capital into the business and advise the management. Ernst & Young will be advising the committee on the proposed fundraising exercise, the company has said.
April 09, 2021 / 09:45 AM IST
SREI posted consolidated losses of Rs3,810 crore in the third quarter of the current fiscal on account of higher provisions.
SREI Infrastructure Finance share price surged 20 percent hitting the upper circuit of Rs 7.02 a share on BSE after the company received the expression of interest for up to $250 million capital infusion.
Srei Equipment Finance Limited (SEFL) announced on April 8 that it has received an expression of interest for up to $250 million capital infusion in the company from US-based Arena Investors LP and Singapore’s Makara Capital Partners.
Also Read: Srei Equipment Finance receives expression of interest for up to $250 mn capital infusion
The company’s strategic coordination committee (SCC), chaired by independent director Malay Mukherjee, will be coordinating, negotiating, and concluding discussions with the PE investors to bring capital into the business and advise the management. Ernst & Young will be advising the committee on the proposed fundraising exercise.
The stock was trading at Rs 7.02, up Rs 1.17, or 20.00 percent, at 0931 hours. It has touched an intraday high of Rs 7.02 and an intraday low of Rs 6.52. There were pending buy orders of 640,009 shares, with no sellers available.
The SCC is running an independent process for investor identification, which is being carried out in parallel to the debt realignment plan. The SCC will engage in discussions with the potential investors to raise fresh capital for the business, which will provide a cushion against the pandemic-induced stress in the Indian financial services space.
Also Read: SREI top level exodus continues: COO quits after lenders cap top deck salaries
SREI Equipment Finance top executives have been leaving the crisis-ridden firm after lenders capped the salaries of top deck in December in a desperate bid to recover their dues.
SREI owes around Rs 18,000 crore to around 15 lenders including Axis Bank, Uco Bank and SBI. According to SREI, its finances took a hit due to COVID-19 and it has secured a moratorium from the Kolkata branch of bankruptcy court National Company Law Tribunal.