Srei Equipment Finance Ltd (SEFL) on Saturday said it has received investment interest of Rs 2,000 crore from US-based Arena Investors LP (Arena) led consortium.
The strategic coordination committee has received a term sheet from Arena Investors LP (Arena), USA and its consortium and their affiliates indicating interest for investment of an aggregate amount of Rs 2,000 crore subject to terms and conditions contained in the term sheet, Srei Equipment Finance said in a regulatory filing through its parent company Srei Infra.
”The strategic coordination committee, chaired by an independent director, will evaluate the said offer and make recommendation of the board to the company,” SEFL said.
The company, hit hard by the economic slowdown due to the coronavirus induced lockdown, has been looking to raise money for some time. Earlier in April this year, it had received investment interest of USD 250 million (around Rs 1,856 crore) from Arena and Makara put together.
Going by the separate intent of Rs 2,200 crore investment by Makara by picking up equity as well as some other securities in SEFL and Arena’s Rs 2,000 crore investment interest, the Kolkata-based equipment financier has attracted more than double the amount of interest shown by these entities put together in April.
The unlisted entity SEFL is a fully owned subsidiary of Kolkata-based Srei Infrastructure Finance. The company’s strategic coordination committee (SCC) is chaired by independent director Malay Mukherjee.
Mukherjee has been tasked to coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management.
Besides, Ernst & Young (EY) has been roped in to advise the committee on the proposed fundraising exercise, which is being carried out in parallel to the company’s debt realignment plan. Srei Equipment Finance provides financing mainly for construction and mining equipment.
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”The strategic coordination committee, chaired by an independent director, will evaluate the said offer and make recommendation of the board to the company,” SEFL said.Previous