Srei Infrastructure Finance Ltd. (Srei) is planning to list its wholly-owned subsidiary Srei Equipment Finance through a composite scheme of arrangement and amalgamation, according to chairman and managing director Hemant Kanoria.
This decision, on which the company has also made a regulatory filing, follows Srei’s deferment of an earlier strategy of listing its equipment finance business through an IPO.
“IPO was a different track, but objective is the same,” Mr. Kanoria told reporters. “Now, we are making the company ready to raise capital when it needs,” he said.
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On Monday, Srei’s board cleared the scheme, which would now go for regulatory, statutory and necessary approvals. This may take up to nine months, a senior company official said.
Srei had planned to sell stake in Srei Equipment Finance Ltd. (SEFL), through an IPO last year. It was learnt that volatile market conditions and the IL&FS crisis influenced Srei’s decision to opt for other routes to list the entity.
The company would also augment the capital base of both the infrastructure finance and equipment finance businesses, Mr. Kanoria said. Under this proposal, ₹500 crore would be infused into the equipment business.
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