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Kolkata-based Srei Equipment Finance Private Ltd plans to turn into a public limited company from a private limited company. This move will enable it to tap retail investors through bond offerings.
“The conversion process is in progress. We should be a public limited company soon,” said D.K. Vyas, Chief Executive Officer.
Once the conversion is completed, the non-banking finance company will raise Rs 250 crore through a retail bond offering this fiscal.
The company has no plans to list anytime soon.
“Listing is not on the agenda for now. Both our partners are ready to invest equity whenever we need it. Equity is not a problem, but we want to tap the retail debt market,” Vyas added.
Srei Equipment Finance Private Ltd, which is into new construction equipment financing, medical and IT equipment financing, is a joint venture between Srei Infrastructure Finance Ltd and BNP Paribas.
The company also plans to raise an additional Rs 1,000 crore by tapping the debt market in fiscal 2014.
PARENT COMPANIES INFUSE RS 200 CR
The parent companies – Srei Infrastructure Finance Ltd and BNP Paribas -- have infused Rs 200 crore equity into the company. This takes the net worth of Srei Equipment Finance Private Ltd to over Rs 1,660 crore.
“With the revival in economic sentiment, the additional equity investment augurs well for us. Being a market leader with over 30 per cent market share in infrastructure and construction equipment financing, Srei Equipment Finance mirrors industry growth,” Vyas said.
> satyanarayan.iyer@thehindu.co.in
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