Srei Infrastructure Finance Limited to Augment Capital of Infrastructure and Equipment Finance Business
Srei Infrastructure Finance Limited (“Srei”) announced their decision to augment the capital of both its infrastructure finance and equipment finance businesses. This will be helpful to facilitate the businesses in maintaining and strengthening their current leadership positions further.
The move will result in listing of the company’s equipment finance business through a composite scheme of arrangement and amalgamation (“Scheme”) and give shareholders of Srei an opportunity to directly participate in the high growth equipment finance sector.
The growth in the infrastructure space, propelled by the government’s substantial budgetary allocation in road, irrigation, mining, railways, ports, affordable housing and other infrastructure sub-sectors, has improved the growth prospects of infrastructure finance and equipment finance businesses. In last few years, there has been significant growth in sales of construction, mining and allied equipment (“CME”) and the industry expects the demand to remain strong in coming years. This has made the capital augmentation programme of both infrastructure finance and equipment finance businesses pertinent.