SREI Infrastructure Finance Ltd is mulling an IPO for its equipment finance unit to a maximum of 25% of the post-issue paid-up capital. The success of the IPO is subject to approval of shareholders, market conditions and receipt of requisite approvals from statutory and other authorities, the company said during a meeting on August 17. The board of SREI Equipment Finance Ltd, wholly owned subsidiary SREI Infrastructure Finance Ltd had approved to evaluate the IPO, the company announced.
SREI Infrastructure Finance Ltd expects that after the IPO there will be no requirement for additional capital for next 3-4 years. The company expects to raise Rs 1,800- 2,000 crores through the IPO, as told to CNBC TV18. ET Now reported the company as saying that it sees good resale value for repossessed second hand vehicles, so the proceeds will be used to fund growth in the segment. According to the company’s estimate, the AUM will continue to grow at 20% year-on year, as there has been improvement in Asset Quality.
SREI Infrastructure Finance Limited (“Srei”), a Kanoria Foundation entity, is one of India’s largest provider of infrastructure financing services in India. The company has been in operation for more than 30 years, and has close to USD 5.5 billion of consolidated assets under its management.
SREI Equipment Finance Ltd is a wholly owned subsidiary of SREI Infrastructure Finance Limited. SREI Equipment Finance Ltd is present in 89 locations across the country. As per information in the company’s website, it caters to more than 58,000 customers, including first time users, first time buyers of equipment, fleet owners, small contractors and large construction companies. The business lines under which the company operates includes- Earth Moving Equipment ,Material Handling Equipment, Road Construction ,Concrete Equipment, Material Processing Equipment etc.