Buzzing stock: SREI Infra to dilute 25 percent stake in subsidiary through IPO
DSIJ Intelligence / 18 Aug 2017
SREI Infrastructure Finance Ltd. is diluting its 25 percent stake in its wholly-owned subsidiary named SREI Equipment Finance by raising an IPO in the market.
SREI Infrastructure Finance Ltd. is diluting its 25 percent stake in its wholly-owned subsidiary named SREI Equipment Finance by raising an IPO in the market. The company is planning to raise Rs 1,800-2,000 crore through this IPO by end of FY18.
Post this IPO, Srei Infra will have 75 percent stake and the remaining 25 percent would be held by the public in SREI Equipment Finance.
As per the management, the proceeds from the IPO would help the company to grow and gain a leadership position. The Board of Directors has decided to constitute an IPO committee to take decisions regarding appointment of advisors, legal counsels, investment bankers, etc.
The equipment finance business has been growing at a rate of 20-22 percent on a year-on-year basis and currently the company enjoys 35 percent market share in the equipment finance business.
The company informed the BSE about the IPO on Thursday after which an upside movement in the price of the stock was seen at the stock exchange. It touched an intra-day high of Rs 125.75 on Thursday, showing an upside of 4.9 percent from its previous closing price of Rs 119.90.
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