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.”

Advertisement

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

Events20 hours ago

Danube Properties’ Dh525 million Opalz sold out on the first day of launch

October 4, 2022: Danube Properties, the UAE-based affordable housing developer, said, its latest project Opalz, a twin-tower residential project with...

Events20 hours ago

Pacific Mall D21’s ‘Dussehra Celebrations’ drops the curtain with high attendance

New Delhi: Pacific Mall D21 organised a two-day Dussehra celebration and Garba Night, attracting massive turnouts. The special arrangement of...

News20 hours ago

Tata Value Homes sells over 100 residential units at New Haven, Bahadurgarh at launch

Delhi/Haryana October 4, 2022: With an aim to address the growing demand for quality homes in Haryana – Bahadurgarh, Tata...

New Launches21 hours ago

Welspun Corp opens steel plant in Anjar

October 3, 2022, Anjar, Gujarat: Welspun Metallics Limited, a subsidiary of Welspun Corp Limited (WCL), the flagship company of the Welspun...

Events2 days ago

Over 1500 cyclists join Hiranandani Thane Cyclothon 2022 to support ‘Rhyme for Earth’ initiative

October 2, Thane: The Hiranandani Group hosted the first Hiranandani Thane Cyclothon today from its thriving Thane township, Hiranandani Estate. Over...

New Launches2 days ago

Ashiana Housing adds over 900 senior living units with Villas and Apartments with the launch of Ashiana Advik in Bhiwadi

New Delhi, October 3, 2022: New Delhi-based real estate developer Ashiana Housing has announced the launch of Ashiana Advik in Sector 39, Bhiwadi....

Trending