By Aditya Raghunath
Investing.com -- Shares of non-banking lender SREI Infrastructure Finance Ltd (NS:SREI) hit an upper circuit of 20% moments after the opening bell today. The Kolkata-based company said it has received expressions of interest for capital infusion of up to $250 million from two PE (private equity) funds, US-based Arena Investors LP and Singapore’s Makara Capital Partners.
“The company’s strategic coordination committee (SCC), chaired by Malay Mukherjee, independent director, will coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management,” it said.
SREI said Makara Capital specializes in fund management, private equity, as well as structuring and financing with a core focus on innovation, infrastructure, and energy.
“The SCC will engage in discussions with the potential investors to raise fresh capital, which will provide cushion against the pandemic-induced stress," SREI said.
SREI has been badly hit by the COVID-19 pandemic and is in a serious financial crisis. It owes around Rs 18,000 crore ($2.4 billion) to 15 lenders including AXIS Bank Ltd (NS:AXBK), UCO Bank (NS:UCBK) and State Bank Of India (NS:SBI). A number of top executives have left the firm after lenders forced a cap on salaries of top management in an attempt to recover their money. The company has secured a moratorium from the Kolkata branch of bankruptcy court National Company Law Tribunal.
SREI stock is locked at Rs 7, up 20% from its previous close of Rs 5.85.