Financing firm Srei Infrastructure Finance has completed the share swap deal with BNP Paribas, thus making Srei Equipment a wholly-owned subsidiary of itself.
Vice-chairman of Srei Infrastructure Sunil Kanoria said the share swap was completed today which was announced in December.
“In December, we had announced that Srei Infrastructure will buy out 50 per cent stake in Srei Equipment from BNP Paribas and the latter would get 5 per cent in Srei Infrastructure”, he told reporters here today.
Stating that it was a pure share-swap deal, Kanoria said after the transfer, Srei Infrastructure would be able to consolidate 100 per cent of Srei Equipment’s profits into the parent company.
In last financial year, Srei Equipment’s net profit stood at Rs 115 crore.
Kanoria said this deal will have positive impact on Srei Infrastructure’s balance sheet and capital would remain a constraint.
On outlook of equipment financing industry, he said since the last three or four months, there had been a strong growth which was expected to continue for some time in future.
He said Srei would now continue to focus on infrastructure and equipment financing businesses.