Srei Equipment Finance to get $250 million capital infusion from global PE funds

Srei Equipment Finance Ltd (SEFL) has got expression of interest for up to 250 million dollars (about Rs 1,838 crore) capital infusion from US-based Arena Investors LP and Singapore's Makara Capital Partners.

The company's strategic coordination committee (SCC) chaired by independent director Malay Mukherjee will coordinate, negotiate and conclude discussions with the private equity investors to bring the capital into business and advise the management.

SEFL said the process is being carried out in parallel to a debt realignment plan. The SCC will engage in discussions with potential investors to raise fresh capital for the business which will provide cushion against the pandemic-induced stress in Indian financial services space.

The SCC will also be a nodal point for comprehensive cash flow realignment plan with banks and financial institutions besides all external service providers including investment bankers, lawyers and consultants.

Ernst & Young will advise the committee on proposed fund raising exercise.

SEFL, a wholly-owned subsidiary of Srei Infrastructure Finance Ltd, is an industry leader in construction and mining equipment financing.

At 12:50 pm, the stock of Srei Infrastructure Finance was trading 20 per cent higher on BSE at Rs 7.02 per unit.

Arena Investors LP is a multi-strategy investment firm with two billion dollars of committed capital. The firm's investment mandate is global and also unconstrained in terms of asset class and industry. It provides creative solutions for those seeking capital in special situations.

Makara Capital specialises in fund management, private equity as well as structuring and financing with a core focus on innovation, infrastructure and energy.

( With inputs from ANI )