SREI Infrastructure locks in upper circuit on fund-raising plans
Kolkata-based infrastructure finance company, SREI Infrastructure’s share traded higher today after the management informed about its fund-raising up to Rs 3,000 crore. The shares of the company were locked in upper circuit of 10 per cent in the early trade on Tuesday.
The press release by the management said that the company will raise funds through public issue of redeemable, Non-Convertible Debentures (NCDs) amounting to Rs 1,000 crore in one or more tranches during FY21, along with issuance of redeemable, NCDs (including bonds) and commercial papers, aggregating upto Rs 1,000 crore outstanding at any point of time during FY21 on private placement basis in one or more tranches.
Looking at the current liquidity crunch and slow credit off-take in the infrastructure segment, the fund-raising will be a very important trigger for the company. The company, which has already faced de-growth in disbursement and its consolidated gearing, stood high due to a delay in equity-raising activity.
During December 2019, the stock touched its 52 week low price of Rs 7.17 on BSE. But due to anticipation of capital infusion, the stock has shown a surge in the past few weeks.