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Kolkata-based Srei Infrastructure Finance Ltd is hopeful of raising the first tranche of its proposed $1-billion (nearly Rs 5,030 crore at the current exchange rate) infrastructure fund by October or November this year. The company plans to raise about $500 million (over Rs 2,500 crore) in the first tranche.
“Our team is out in the US to meet and discuss with potential investors. Our intent is to raise $1 billion at one go or in tranches depending on the market conditions. Negotiations have started and it could take eight to nine months to yield results,” said Mr Sunil Kanoria, Vice-Chairman, Srei Infrastructure.
The funds raised through the infrastructure equity fund will be spent on road, power and port projects in the country. “Presently we are able to provide debt but we are not able to provide much of equity support to our customers. This (the $1-billion fund) will help us provide equity to our clients particularly in the mid-market segment,” Mr Kanoria said.
A depreciating rupee against the dollar, weak stock markets and policy issues confronting the infrastructure industry have delayed the company's earlier plans of floating the fund during the current fiscal.
“Though the growth in India might be slightly affected in the short term, but in the medium to long term India has growth potential and that is bound to attract investors,” Mr Kanoria said.
The investors to the fund will be primarily from countries like the US, Japan and Australia, he added.
Debt Fund
Meanwhile, Srei also plans to launch an infrastructure debt fund through the mutual fund route in the next fiscal. This fund could address the long-term financing needs of infrastructure projects, a senior company official had earlier told Business Line .
Srei is also in the process of raising another Rs 300 crore through its maiden retail bond issue. The issue, which opened on December 31 last year, will close on January 31.
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