Srei Equipment Finance Ltd (SEFL), a wholly-owned subsidiary of Srei Infrastructure Finance, said it plans an initial public offer to dilute up to 25 per cent of its equity share capital.
SEFL provides financing for construction and mining equipment in the country. The company in a statement said that its board of directors at a meeting today has decided to evaluate public offering of its equity share capital. IPO Alert: New India Assurance Files For IPO
SEFL CMD Hemant Kanoria said: "Infusion of fresh capital into the business will help us achieve our growth objectives and result in enhanced stakeholder value." Sunil Kanoria, the Vice-Chairman of the company, said increased spending in infrastructure by the government has led to growth in equipment sales. This has increased SEFL's opportunity to assist customers with equipment loan/lease, deployment solutions, maintenance solutions, working capital products and exit solutions, he added.
"We are also focused in bringing in new vendors and manufacturers to the country to further expand our markets. This relationship-cum-partnership approach along with our asset life cycle solution should enable our growth surpassing the growth trajectory of the industry," said Devendra Kumar Vyas, Chief Executive Officer, SEFL.
Company's asset under management (AUM) grew by over 20 per cent to Rs 23,453 crore during the first quarter of 2017- 18.