Srei Infrastructure Finance Ltd and BNP Paribas plan to expand the capital base of their joint venture (50:50) company – Srei Equipment Finance Ltd. Srei Infrastructure and BNP Paribas will invest Rs 100 crore each into Srei Equipment Finance.
According to Sunil Kanoria, Vice-Chairman, Srei Infrastructure, the company has already got the board’s approval for the equity investment.
“We hope to go ahead with the capital infusion soon. This will increase the networth of Srei Equipment to Rs 1,667 crore,” Kanoria said.
The equipment finance business, which grew by close to 50 per cent last year, is likely to grow by 25 per cent this year. Srei Infrastructure plans to raise Rs 200 crore through the issue of secured, redeemable, non-convertible debentures. The funds would be raised in one or more tranches during the year.
Net profit dives
Dragged down by a notional forex loss of over Rs 58 crore, Srei Infrastructure posted 69 per cent drop in net profit to Rs 17 crore for the quarter ended June 30, compared with Rs 55 crore in the same period last year. “We have booked a notional mark-to-market loss of Rs 58 crore. If this were not there then our profits would have been good,” Sunil Kanoria said.