Srei Equipment Finance gets Rs 2,200-crore investment interest from Singapore’s Makara

by Jeremy

After Srei had proposed debt restructuring, its lenders proposed the appointment of a forensic auditor before approving the debt realignment plans. Srei Equipment Finance (SEFL), a wholly-owned subsidiary of Srei Infrastructure Finance, on Friday said it had received a term sheet from Singapore-based private equity investor Makara Capital Partners, indicating interest for the investment of Rs 2,200 crore by way of subscription to equity shares and other securities of the company.

Srei Equipment Finance gets Rs 2,200-crore investment interest from Singapore’s Makara

In April, the company received an expression of interest (EoI) from Makara Capital for capital infusion. Also, it had received an EoI from US-based Arena Investors. SEFL’s strategic coordination committee (SCC), chaired by an independent director, will evaluate the Makara Capital’s offer and make the recommendation to the board, according to a stock exchange filing. Earlier, the company said the SCC was running an independent process for investor identification, and this process was being carried out in parallel to the debt realignment plan.

The SCC will engage in discussions with 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,” it had said.

On Friday, Srei Infrastructure Finance’s scrip on the BSE closed 9.94% higher at Rs 14.49.

The Reserve Bank of India had appointed an auditor in November last year to conduct a special audit of Kolkata-based Srei Infrastructure Finance and SEFL. KPMG and DmKH & Co were also hired for forensic audits.

After Srei had proposed debt restructuring, its lenders proposed the appointment of a forensic auditor before approving the debt realignment plans. Srei Equipment Finance had approached the National Company Law Tribunal, Kolkata, with a scheme of arrangement which proposes arrangements with six types of creditors.

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