SREI Infra Company’s shares locked in 10 percent upper circuit on investment proposal for subsidiary

After SREI Infrastructure Finance received a term sheet from Makara Capital Partners Pte for an investment in a subsidiary, the company’s share price hit a 52-week high of ₹14.49 while getting locked in 10 percent upper circuit on Friday.

The wholly owned subsidiary of Kolkata-based SREI Infrastructure Finance, SREI Equipment Finance (SEF) is aiming at raising money majorly after the coronavirus-induced economic downturn affected its financials.

SREI Infrastructure Finance in a regulatory filing announced, “This is to inform that the Strategic Coordination Committee has received a term sheet from Makara Capital Partners Pte Ltd (Makara), Singapore indicating interest for the investment of an aggregate amount of ₹2,200 crore by way of subscription to equity shares and other securities of the company.” Nevertheless, the company did not reveal how much equity Makara wants to pick up in the firm.

It added that a strategic coordination committee would be chaired by an independent director and evaluate the offer along with making recommendation to the board.

In April 2021, the company had informed about getting the expression of interest (EOI) of upto ₹1,856.41 crore capital infusion from USA’s Arena Investors LP and Singapore-based Makara Capital Partners.

The monetary rate indicated by Makara Capital in SREI Equipment Finance exceeds the interest displayed by both Makara and Arena in the month of April. The Strategic Coordination Committee (SCC) of the company is chaired by an independent director called Malay Mukherjee.

His tasks are to coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and give advices to the management.

SEFL is an unlisted entity that provides financing for construction and mining equipment. SREI Infra’s shares closed 9.94 percent higher at ₹14.49 apiece on Bombay Stock Exchange.

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