Srei Equipment Finance Ltd (SEFL), a wholly owned subsidiary of Srei Infrastructure Finance Ltd, on Friday said that it has received a term sheet from Makara Capital Partners Pte. Ltd, Singapore, indicating interest for an estimated investment of around ₹2,200 crore.
The investment will be through subscription to equity shares and other securities of the company subject to the terms and conditions in the said term sheet, the company said in a notification to stock exchanges on Friday.
“This is to inform that the Strategic Coordination Committee (SCC) has received a Term Sheet from Makar), Singapore indicating interest for investment of an aggregate amount of ₹2,200 crores by subscription to equity shares and other securities of the company subject to the terms and conditions contained in the said Term Sheet. The SCC chaired by an independent director, will evaluate the said offer and make the recommendation to the Board of the company,” it said.
SEFL had earlier in April this year received an expression of interest (EoI) for capital infusion from Cerberus Global Investments B.V. It had also received expression of interest for up to $250 million (approx ₹1,865 crore) capital infusion from international private equity funds including US-based Arena Investors LP and Singapore’s Makara Capital Partners.
Infusion to provide cushion
The SCC has been running an independent process for investments in SEFL and many large players have evinced interest. The proposed capital infusion, which is being carried out in parallel to the company’s debt realignment plan, is expected to provide cushion against the pandemic induced stress in the Indian financial services space, the company had said.
Ernst & Young is advising the SCC on the fundraising exercise.
Meanwhile, Srei Infrastructure Finance Ltd had, in April this year, appointed KPMG Assurance and Consulting Services LLP and DmKH & Co. as forensic auditors for its proposed debt restructuring plan.
Kolkata-headquartered Srei group has a total debt outstanding of nearly ₹27,000 crore which includes ₹18,000 crore outstanding to as many as 15 lenders including SBI, Axis Bank and UCO Bank among others. The company has been facing cash flows issues in the wake of the Covid-19 pandemic-driven economic stress.