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.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel