BNP Paribas and Srei Infrastructure have invested close to Rs 200 crore in their joint venture company Srei Equipment Finance. The capital infusion will increase the net worth of the company to over Rs 1,660 crore.
The money will be used by Srei Equipment Finance to expand its business, the company said in a statement today.
"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," DK Vyas, chief executive officer of the joint venture company, said.
"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," he added.
Srei Equipment Finance aims to grow its disbursements by 10-15% year-on-year in 2012-13. It had disbursed Rs 12,710 crore loans in the last financial year. The assets under management was Rs 18,492 crore at the end of June, 2012.