| Srei had recently informed the stock exchanges that it is considering a proposal to raise additional equity capital in one or more tranches either by way of a domestic public issue or by way of private placement, preferential allotment of equity shares or by way of international offerings like ADR,GDR. |
| The final decision regarding this will be taken at a board meeting on February 11. |
| As Srei is gearing up for domestic and overseas issue, Sources in the market informed that the new entrants in the Indian capital market, the Japanese, has picked up substantial stake in Srei in last one week. |
| Srei reached its 52-week high at Rs 59.20 in February 1 which experts feel could be owing to Japanese buying. |
| This has assumed significance because US asset management and merchant banking giant Merill Lynch had earlier picked up around 4.7 per cent stake in the company from open market in December 2004. |
| Incidentally, foreign institutional investors such as IFC Washington, DEG Germany and FMO Netherlands jointly have around 19 per cent in Srei. |
| Merill Lynch bought around 25 lakh shares of Srei between December 10 to December 14 at an Rs 48-50. |
| "It has invested around Rs 12.50 crore in Srei," a top NSE broker said. Srei currently have a paid up equity of Rs 53 crore and a market cap of around Rs 280 crore. |
| Srei managing director Hemant Kanoria said the company will prefer to come out with a domestic offering before tapping overseas market. |
| Sources close to company informed that a domestic offering prior to overseas offering would help the company to increase the market cap. |
| Srei has a market capitalisation of around Rs 285 crore. "There is a minimum market cap requirement in markets like Nasdaq or LSE. So any company going for listing have to comply that," said sources. |
| Incidentally, only three Indian companies are now listed in Nasdaq and 40 companies are now listed on the LSE. |
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