Srei Infrastructure Finance shares rise over 5% on fund-raising buzz

Shares of Srei Infrastructure Finance rose 5.2% to Rs 27.40 amid talk it is planning to raise Rs 450 crore to increase the loan book size. The NBFC plans to issue fresh shares, including PE firms, said two people privy to the matter.

A foreign bank and Srei’s in-house merchant banking team are said to be working on the transaction. Hemant Kanoria, CMD, said: “We don’t have plans to raise fund through equity. We have a net worth of Rs2,500 crore and we are well capitalised to finance our growth.” It is believed to be looking for equity investment in its road projects and also in its construction equipment financing JV Srei BNP Paribas.

“We are looking at some kind of dilution in our road projects but the current market valuation is not very attractive,” Kanoria said.

Contibuted by Reena Zachariah & Rachita Prasad