SREI Infra locks in upper circuit on receiving expression of interest for USD 250 million capital infusion
SREI Infrastructure Finance Ltd has zoomed and got locked in upper circuit of 20 per cent after its material subsidiary, SREI Equipment Finance Ltd received an expression of interest for up to USD 250 million capital infusion in the company.
US-based Arena Investors LP and Singapore's Makara Capital Partners are the international private equity (PE) funds from whom the expression of interest is received.
Arena Investors LP is a multi-strategy investment firm with USD 2.2 billion of committed capital whose investment mandate is global and provides creative solutions for those seeking capital in special situations.
Makara Capital Partners is a global financial services company under the regulatory purview of the Monetary Authority of Singapore (MAS), which specialises in fund management, private equity, structuring, and financing with focus on innovation, infrastructure & energy.
The process of investor identification is being carried out in parallel to the debt realignment plan. The company's Strategic Coordination Committee (SCC) will engage in discussions with the potential investors to raise fresh capital for the business, which will provide a cushion against the pandemic-induced stress in the Indian financial services space.
On Friday, the stock of SREI Infra had a gap-up opening by 18.8 per cent at Rs 6.95 and got locked in the upper circuit of 20 per cent at Rs 7.02 from its previous close of Rs 5.85 on BSE.