BNP unit picks up 5 pct stake in Srei Infra in lieu of JV shares

MUMBAI (Reuters) - Srei Infrastructure Finance Ltd said BNP Paribas SA's leasing unit would acquire a 5 percent stake in the company in lieu of 50 percent ownership in an equipment financing joint venture.

Srei Infrastructure operates Srei Equipment Finance Ltd (SEFL) as a joint venture along with BNP Paribas unit BNP Paribas Lease Group.

SEFL runs a lending business that helps its customers finance purchases of mining and construction equipment as well as provide loans for commercial equipment used in hospitals, data centres and farms.

Srei said the rejig would allow the company to consolidate SEFL's operations with the parent company, and would give BNP access to a wider infrastructure finance market in India.

 

Srei Infrastructure shares rose 2.8 percent on the National Stock Exchange after the announcement.

(Reporting by Himank Sharma; Editing by Subhranshu Sahu)