Moneycontrol Bureau
Shares of Srei Infrastructure Finance (SREI) rallied nearly 19 percent intraday Tuesday to hit a 52-week high of Rs 61.40 as BNP Paribas Lease Group (BPLG) will acquire 5 percent stake in the company.
"Srei Infra, BPLG, Srei Equipment Finance (SEFL), Hemant Kanoria and Sunil Kanoria have entered into a share purchase agreement whereby BPLG has agreed to acquire 2.5 crore equity shares of SREI, representing 5 percent equity capital. In lieu thereof, BPLG will sell its entire shareholding of 2.98 crore shares of SEFL to SREI," says the non-banking finance company in its filing to exchanges.
SEFL is a 50:50 joint venture between Srei Infrastructure Finance and BNP Paribas Lease Group.
Funds received by SREI from 5 percent stake sale will be used for acquisition of additional stake (50 percent) in SEFL.
"This would enable SREI to consolidate 100 percent of financial results of infrastructure equipment finance business and would enable BPLG to take advantage of larger infrastructure play in industry," says the company.
BNP Paribas had bought 50 percent stake in Srei Equipment Finance in 2007.SEFL is engaged in business of asset-based financing for equipment such as construction equipment, transportation, materials handling, agricultural equipment, medical systems, IT and renewable energy systems such as solar heaters.
Total asset under management of SEFL stood at Rs 18,747 crore as on September 2015. It reported profit after tax of Rs 27.62 crore in quarter ended September 2015, increased from Rs 22.85 crore in preceding quarter. Gross non-performing asset during the same period declined to 4.43 percent from 4.94 percent.
The company says transaction is expected to consummate by March 2016, subject to obtaining approval of the RBI.
As per September shareholding, Hemant Kanoria, Sunil Kanoria and Adisri Commercial Private Limited (58.28 percent) have 58.72 percent stake in SREI.
At 14:44 hours IST, the scrip of SREI Infrastructure Finance was quoting at Rs 59.50, up Rs 7.80, or 15.09 percent amid high volumes on the BSE.Posted by Sunil Shankar Matkar
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