Kolkata-based SREI Equipment Finance Limited (SEFL), wholly-owned subsidiary of SREI Infrastructure, in its release today at 2.40pm announced that it has received a term sheet from Singapore-based Makara Capital Partners Pte Ltd, indicating interest for an investment of around Rs2,200 crore by way of subscription to equity shares and other securities. SEFL is an unlisted entity which provides financing for construction and mining equipment.
However, the company has not disclosed how much equity Makara intends to buy in the company.
A strategic coordination committee (SCC), chaired by an independent director, would evaluate the offer and make the recommendation to the board, SEFL added.
The SCC is chaired by independent director Malay Mukherjee, who has been tasked to coordinate, negotiate and conclude discussions with private equity (PE) investors to bring in capital into the business and advise the management.
Ernst & Young (EY) was roped in to advise the committee on the proposed fund-raising exercise which is being carried out simultaneously alongside the company's debt realignment plan.
SREI Infrastructure Ltd shares zoomed to hit a 52-week high of Rs14.49 and were locked in 10% upper circuit today afternoon after this news was released.
Earlier in the morning, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had sought clarification from SREI Infrastructure Finance Ltd with reference to significant price movement in share price. For the past few days, the share price had suddenly been rising.
However, in a response posted today morning at 9.40am to the Exchange’s query, the company said “We wish to inform you that all the information/events which have a bearing on the operations of the company are disclosed to the Exchange on immediate basis as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (SEBI Listing Regulations). Further as on date, there is no material relevant information /event having a bearing on the operations/performance of the company which requires disclosure as per Regulation 30 of SEBI Listing Regulations.”
The company added in the response signed by company secretary Manoj Kumar that since its shares are freely traded on the Exchange, it is unable to comment on the movement in share price.
In April this year, SREI Equipment Finance had revealed that it had received two EOIs of up to USD 250 million
(Rs1856.41 crore) capital infusion from US-based Arena Investors LP and Singapore based Makara Capital Partners.
Additionally, SEFL had also announced that it had further received another EOI for capital infusion from Cerberus Global Investments B.V, a NewYork-headquartered global private investment firm.
It is worth noting that this new investment proposal offer and this current monetary interest of Makara in SREI Equipment Finance exceeds the interest shown by both Makara and Arena in April 2021.
In April 2021, KPMG and DmKH & Co were appointed as forensic auditors of the company as part of its debt realignment process.