Srei consolidates 100% shareholding in Srei Equipment Finance Limited ("SEFL")

Chandigarh: Srei Infrastructure Finance Limited ("Srei") on Friday announced that it has consolidated 100% shareholding in Srei Equipment Finance Limited ("SEFL").

This follows the closing of the acquisition of 5% equity in Srei Infrastructure Finance Limited by BNP Paribas Lease Group announced on December 29, 2015.

This will add substantial value to Srei's shareholders and will enable them to reap 100% benefit of the equipment finance business.

The consolidation of the equipment financing business will expand Srei's consolidated net worth to about Rs 4,800 crore,further paving the way for multi-fold growth in business, revenue and profits. Srei will also benefit from having BNP Paribas Lease Group as a shareholder.

Commenting on the occasion, Mr. Hemant Kanoria, Chairman and Managing Director, Srei said: "As the consolidated net worth of Srei will increase to about Rs 4,800crore; therefore, there would be an immediate and substantial jump in shareholder value. This process of adding continued value through various efforts by the company to enable the shareholders to optimise their investments will be an ongoing effort by the management."

At the end of December 2015, Srei had announced that BNP Paribas Lease Group would acquire shares in Srei against its stake in SEFL to take advantage of opportunities in the broader infrastructure sector in India.

BNP Paribas Lease Group has received 25.15 million equity shares of Srei, representing 5% of the total paid-up equity share capital of the company, in lieu of its entire shareholding of 29.83 million equity shares of SEFL, representing 50% of the total paid-up equity share capital of SEFL.