The Hindu Business Line : Srei Infra, BNP Paribas Lease venture takes off

Srei’s equipment finance and insurance broking portfolios are being transferred to the new venture. Srei will concentrate on infrastructure financing.

Our Bureau

Kolkata, April 3

The proposed 50:50 joint venture between Srei Infrastructure Finance Ltd and BNP Paribas Lease Group (BPLG), a member of the BNP Paribas Group, was launched on Wednesday with the formal signing of the agreement, having obtained all the necessary clearances and statutory approvals.

Briefing newspersons here, Mr Hemant Kanoria, Vice-Chairman and Managing Director of Srei Infrastructure Finance, said the proposed company, to be headquartered in Kolkata, will be in a new 35,000 sq ft office in the Salt Lake area. Srei’s equipment finance and insurance broking portfolios are being transferred to the new venture.

He said a large team of 350 people would be working exclusively for the venture with BPLG, which has brought in fresh capital of $200 million (Rs 725 crore). The team may be expanded to 500 people soon, it is learnt.

Pointing out that he was looking at a business of Rs 6,000-7,000 crore in equipment financing initially, Mr Kanoria said Srei has been registering a year-on-year growth of 40 per cent in volumes and 25-30 per cent in profitability.

No listing plans

Stating that there was no plan now to list the new entity, as the capital in place was adequate, he said Srei would now fully concentrate on infrastructure financing, advisory services etc.

Describing the current Indian market for equipment financing as buoyant, given the huge investments proposed on infrastructure development by the Government, Mr Bertrand Gousset, Director and Member of the Executive Committee of BPLG, in charge of corporate development, said the proposed venture with Srei was significant for the French partner to grow in India.

The French group has a 20 per cent market share in equipment financing in Europe.

Meanwhile, Srei Infrastructure Finance on Wednesday informed BSE that it has received a certified copy of the Calcutta High Court order, sanctioning the Scheme of Arrangement between Srei Infrastructure Finance Ltd (SIFL), the transferor company, and Srei Infrastructure Development Finance (tranferee). The scheme became effective from April 2, 2008, consequent upon filing of certified copy of the said order with the Registrar of Companies, West Bengal.

More Stories on : Alliances & Joint Ventures | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
City Union Bank gets nod for ESOPs

Rupee slightly lower

DCB sees western corridor presence as an advantage

IRFC borrowing cost rises to 9.3% in 2007-08

Bond prices rise

RBI wants counselling centres for borrowers

Call rate closes at 5-5.5

Srei Infra, BNP Paribas Lease venture takes off