Srei Infra Finance jumps 20% on receiving EoI from Cerberus for subsidiary

Shares of Srei Infrastructure Finance (Srei) were locked in 20 per cent upper circuit limit on the BSE in Monday's intra-day session after the company's wholly-owned subsidiary Srei Equipment Finance (SEFL) received an expression of interest (EoI) for equity infusion from global private investment firm Cerberus Global Investments.

Srei group, however, did not disclose the committed size of the infusion.

Following this development, the stock was quoting at Rs 7.35, up 19.90 per cent while BSE Sensex was trading 1.51 per cent higher at 48,600.

The board of directors of Srei Infrastructure Finance and its subsidiary Srei Equipment Finance Limited held meetings on Friday, April 23, 2021, the company said in a regulatory filing.

Cerberus Global Investments joined two other prospective investors for infusing capital into Srei Equipment Finance.

Established in 1992, Cerberus comprises one of the world's leading private investment firms with approximately $53 billion under management across multiple strategies. It is headquartered in New York City, USA, and has advisory offices in Mumbai, Tokyo, Hong Kong, Singapore, Beijing, London, Dublin, Dubai, Madrid and Frankfurt, among others.

Earlier, SEFL also received EoIs for capital infusion of about $250 million from US-based multi-strategy investment firm Arena Investors LP and Singapore-based global financial services company Makara Capital Partners.

The company is in discussions with both Arena Investors and Makara Capital. That apart, the company's Strategic Coordination Committee ("SCC"), chaired by Independent Director Malay Mukherjee, is also engaged in discussions with the private equity funds to bring capital into the business, the company said in a press release.

The proposed capital infusion, which is being carried out in parallel to the company's debt realignment plan, is expected to provide a cushion against the pandemic induced stress in the Indian financial services space, the company said.

Ernst & Young ("E&Y") is advising the SCC on the fundraising exercise.

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