The shares of Srei Infrastructure Finance Limited were locked in the 20 per cent upper circuit on Friday after its subsidiary Srei Equipment Finance Ltd (SEFL) said that it had received an expression of interest for up to $250 million capital infusion from international PE funds.

At 11:20 am, Srei Infra was trading at ₹7.02 on the BSE, up 1.17 or 20.00 per cent. It had opened at ₹6.95 as against the previous close of ₹5.85. On the NSE, it was trading at ₹7, up 1.15 or 19.66 per cent.

SEFL on Thursday said that it has received an EOI for up to $250 million capital infusion in the company. The international private equity (”PE”) funds are US-based Arena Investors LP and Singapore’s Makara Capital Partners.

Arena Investors LP is a multi-strategy investment firm with $2.2 billion of committed capital. Makara Capital Partners is a global financial services company under the regulatory purview of the Monetary Authority of Singapore (“MAS”).

Also read: Coming, an exclusive funding institution

The company’s Strategic Coordination Committee (“SCC”), chaired by Malay Mukherjee, Independent Director, will coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management, as per a regulatory filing. Ernst & Young will be advising the committee on the proposed fundraising exercise.

“The SCC will engage in discussions with the potential investors to raise fresh capital for the business, which will provide cushion against the pandemic induced stress in the Indian financial services space,” the company said in a regulatory filing.

The process is being carried out in parallel to the debt realignment plan. “The SCC will also be the nodal point for a comprehensive cash flow realignment plan with banks and financial institutions and for all external service providers, including investment bankers, lawyers and consultants,” it said.

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