Srei Infrastructure Finance Ltd is planning to list its wholly-owned subsidiary, Srei Equipment Finance Ltd, which will result in a dilution of up to 25% of the post-issue paid-up equity share capital, the company said.
“In a little less than three decades of our sustained growth in the equipment finance space, we have had experimental learnings from both growth and downturns. Infusion of fresh capital will help us achieve our growth objectives and result in enhanced stakeholder value,” said Hemant Kanoria, chairman and managing director, Srei Infrastructure Finance.
In December 2015, French banking and financial services giant BNP Paribas had agreed to acquire a 5% stake in Srei Infrastructure in lieu of a 50% holding in Srei Equipment Finance, a joint venture between Srei Infrastructure Finance and BNP Paribas Lease Group, which was a 100% subsidiary of BNP Paribas. In 2016, the equipment finance arm finally became a wholly-owned subsidiary of the parent company.
Srei Equipment Finance is registered with the RBI as a non-deposit taking non-banking financial company and is in the business of providing financial products and services to a wide spectrum of assets, which includes construction and mining equipment, information technology equipment and solutions, besides healthcare and farm equipment. The financial products and services comprise loans, leases, rentals and fee-based services, according to its annual report.
In 2016-17, Srei Equipment Finance had made loan disbursements of Rs 11,715 crore. Its profit after tax stood at Rs 149 crore. As of 30 June 2017, the company has Rs 23,453 crore of assets under management.