The IPO (initial public offering) plan of SREI Equipment Finance Ltd (SEFL) received a go-ahead from the board of its wholly-owned subsidiary SREI Infrastructure Finance. “The Board of Directors of SEFL at its meeting on 25 October 2017 has approved, subject to approval of its shareholders, marketing conditions and receipt of requisite approvals from statutory and other authorities, an IPO of its equity shares by way of issue of fresh equity shares up to Rs 2,000 crore, SREI Infrastructure Finance said in an exchange filing.
The SREI Equipment Finance board also approved participation by the existing shareholders of SREI Infrastructure Finance in relation to such number of equity shares held by it which are eligible for the offer for sale. The offer for sale of equity shares has been approved upon receipt of intimation by existing shareholders of its intention to participate in any offer for sale of equity shares.
“The fresh issue size shall be reduced to the extent of participation in offer for sale by existing shareholders, if any, as may be decided by the Board of Directors of SEFL or any duly constituted committee thereof, in its absolute discretion in consultation with the book running lead managers appointed in relation to the IPO,” company added.
SREI Infrastructure Finance was mulling for an IPO for its equipment finance unit to a maximum of 25% of the post-issue paid-up capital since late August this year. Earlier in September, SREI Infrastructure Finance group firm Bharat Road Network came up with its IPO which got subscribed 1.77 times at close of the issue. The shares of Bharat Road Network jumped nearly 6% on their stock market debut. The stock of SREI Infrastructure Finance was trading up 0.5% at Rs 121.65 on BSE.