The Hindu Business Line : Srei Infra mulls pref issue to promoter group

Kolkata Sept. 19 The board of directors of Srei Infrastrure Finance Ltd (SIFL) has proposed a preferential issue of up to 2.5 crore warrants to the promoter group, which on conversion will increase their holding to over 35 per cent from the existing level of 20 per cent.

The board, which met here on Wednesday to deliberate on the issue, has convened an EGM of the company’s shareholders on October 15, to seek their approval.

The warrants, convertible into equity shares in one or more tranches, over a period of 18 months, are proposed to be issued to the promoters at Rs 100 per share.

According to a release by the company here today, this was higher than the price calculated in accordance with the SEBI guidelines for preferential issues at Rs 97.10 per share.

Shortly after the meeting, Mr Hemant Kanoria, Vice-Chairman and Managing Director, in a statement said that “this will augment the promoters’ holding that got diluted owing to the GDR issue in April 2005.

“The promoter group is investing in the convertible warrants at the market-related prices, which endorses their commitment to grow the company aggressively.”

He said focused on the infrastructure sector in a steadfast manner, the enhancement in the capital of Srei will also help the company to grow its businesses.

Considering that the infrastructure financing sector in the country was now poised for exponential growth in the next five years, it was imperative or the company to strengthen its financial position as well as increase net worth, he added.

Commanding an asset size of ovr Rs 6,000 crore already, Srei Infrastruucture Finance has entered into a 50:50 joint venture with BNP Paribas Lease Group, a wholly owned subsidiary of BNP Paribas Bank.

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