SREI plans pref issue

Kolkata-based SREI Infrastructure Finance Limited (SIFL) has decided to issue up to 25 million warrants to the promoters group on preferential basis, subject to approval of shareholders.

On the account of this, in the post issue scenario, the holdings of the promoters would go up by 10 per cent, from 25 per cent now to 35 per cent.

"The warrants are convertible into equity shares in one or more tranches at a price of Rs 100 a share, which is in excess of the price of Rs 97.10 a share," said Hemant Kanoria, vice chairman and managing director, SIFL.

The extraordinary general meeting of the members would be held on October 15 to obtain shareholders' approval for the preferential issue.

Kanoria said the move would help augment promoter's holding that got diluted due to the GDR issue in April, 2005.

"The promoter group is investing in the convertible warrants at the market-related prices, which endorses it's commitment to grow the company aggressively," he added.

According to Kanoria, the infrastructure financing sector in India is poised for an exponential growth in the next five years. "In keeping with the growing opportunities, it was imperative for the company to strengthen its financial position as well as increase its net worth," he added.

SIFL with asset base of Rs 6,000 crore was one of the largest infrastructure equipment financing company in the country and recently it has entered into a 50:50 joint venture with BNP Paribas Lease Group, a wholly-owned subsidiary of the globally BNP Paribas to increase its market share.