BNP Paribas and Srei Infrastructure invest Rs 200 crore in joint venture

MUMBAI: BNP Paribas and Srei Infrastructure have invested about Rs 200 crore of equity in their joint venture company - Srei Equipment Finance (Private) Limited. This will take the net worth of the Company to over Rs. 1,660 crore. With higher capitalization, Srei Equipment Finance will expand its business multi-fold.

Commenting on the additional equity investment by the two shareholders of the Company, DK Vyas, CEO, Srei Equipment Finance, said, "Both the shareholders are equally committed to the growth of the infrastructure equipment finance business. Enhanced equity will strengthen the capital base of Srei Equipment Finance and with additional leveraging, will lead to further growth. With the revival in economic sentiment, the additional equity investment augurs well for us. Being a market leader with over 30% market share in infrastructure and construction equipment financing, Srei Equipment Finance mirrors industry growth."

This fiscal, Srei Equipment Finance is expected to grow by 10 - 15% over last year's disbursement of Rs12,710 crore. As of June 30, 2012, the asset under management of Srei Equipment Finance was over Rs. 18,492 crore.