Rs.2 bn equity investment in Srei Equipment Finance okayed

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SME Times News Bureau | 11 Aug, 2012
Kolkata-based infrastructure and construction equipment financing company Srei Infrastructure Finance Ltd. (SIFL) and French financial major BNP Paribas have approved equity investment of up to Rs.2 billion in their joint venture, Srei Equipment Finance (P) Ltd.

The board of directors of the company has decided to raise funds through public issue of secured, redeemable, non-convertible debentures, not exceeding Rs.2 billion, in one or more tranches, SIFL informed Bombay Stock Exchange (BSE) Friday.

"We are upbeat in the infrastructure space, despite various economic challenges, as it requires a consistent approach. BNP Paribas also sees opportunity in this sector and therefore both the shareholders are committing further equity investment of up to Rs.200 crore (Rs.2 billion) in their joint venture, thereby increasing the net worth to Rs.1,667 crore," said SIFL chairman and managing director Hemant Kanoria.

Srei Infrastructure Finance, however, reported a 68 percent dip in its consolidated net profit for the quarter ended June 30, 2012, to Rs.17.42 crore from Rs.54.60 crore during the same period a year ago.

Consolidated disbursement stood at Rs.3,717 crore (Rs.37.17 billion) during the first quarter of this fiscal as compared with Rs.3,919 crore (Rs.39.19 billion) during corresponding quarter last fiscal.