Srei is planning to launch a $500 million international infrastructure fund, in which the company is looking to rope in international investors. This will be the company's fifth fund, to be launched under Srei Venture Capital Ltd (SVCL), the wholly owned subsidiary of Srei Infrastructure Finance Limited. At present, the subsidiary has about Rs 440 crore fund under management.
In January, the board of directors of Srei Infrastructure Finance had approved the amalgamation of Quippo Infrastructure Equipment Ltd with Srei at a share swap ratio of 3:2 (three shares of Srei for every two shares of Quippo). Kanoria said, the amalgamation would be completed over the next six to nine months, which would increase the net worth of the company to Rs 2,500 crore, from Rs 1,200 crore at present.
This apart, the company is also looking to expand its advisory services to African countries like Nigeria and Uganda, particularly in the road and water sectors. Srei has also sought infrastructure finance company (IFC) licence from the Reserve Bank of India. In the current financial year the company was targeting disbursals to the tune of Rs 12,000 crore, against Rs 9,000 crore last year, a growth of about 33 per cent.
For this, it is planning to raise about Rs 9,000 crore through banks, financial institutions as well as external commercial borrowings, apart from about Rs 3,500 crore as internal accruals.
Net profit at Rs 47-cr
Srei Infrastructure Finance reported more than a ten-fold rise in net profit at Rs 47 crore for the quarter ended March 31, 2010, against Rs 4 crore in the same period last year. Last year, the business had taken a hit, which was the reason that the profits had dipped, said Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance. The net interest margin (NIM) of the company in the last quarter stood at 4 per cent, against 3.5 per cent in the same period last year. The net non-performing assets increased marginally to about 0.7 per cent (0.6 per cent).