SREI Equipment Finance gets EOI from Cerberus Global Investments

Our Bureau Mumbai | Updated on April 24, 2021

The quantum of capital infusion is yet to be declared

Srei Equipment Finance Ltd (SEFL), a wholly-owned subsidiary of Srei Infrastructure Finance Ltd, on Saturday announced that it has received an expression of interest (EoI) for capital infusion from New York-headquartered Cerberus Global Investments B.V.

However, it did not disclose the quantum of capital infusion the firm is planning to make.

On April 8, SEFL, through a stock exchange filing, had announced that it had received EoIs for capital infusion of about $250 million from US-based multi-strategy investment firm Arena Investors LP and Singapore-based global financial services company Makara Capital Partners.

SEFL said it has proceeded with discussions with both Arena Investors and Makara Capital and the company's Strategic Coordination Committee (SCC), chaired by Independent Director Malay Mukherjee, is currently engaged in discussions with the private equity (PE) funds to bring capital into the business.

“The proposed capital infusion, which is being carried out in parallel to the company's debt realignment plan, is expected to provide cushion against the pandemic induced stress in the Indian financial services space. Ernst & Young (E&Y) is advising the SCC on the fund raising exercise,” as per the filing.

Kolkata-headquartered Srei group has a total debt outstanding of nearly ₹27,000 crore which includes ₹18,000 crore outstanding to as many as 15 lenders including SBI, Axis Bank and UCO Bank among others. The company has been facing cash flows issues in the wake of the Covid-19 pandemic-driven economic stress.

Meanwhile, SREI, in a separate filing on Saturday, said: “...the Board at its meeting held on 23rd April, 2021 noted the appointment of KPMG Assurance and Consulting Services LLP and DmKH & Co. as the Forensic Auditors of the Company as advised by the Bankers as step towards the proposed debt realignment plan.”

Published on April 24, 2021

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