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Expect to get all approvals for SREI Equipment Finance IPO soon, says Srei Infra

Updated : June 29, 2018 13:20:58 IST

We expect to get all the approvals for the IPO soon and once the approvals are in place, they would go to the market, said  Hemant Kanoria, Chairman and MD, Srei Infra.

The IPO got delayed due to compliance and approvals, he said.

"They plan to do a mix of primary and secondary issuances and would look to raise anywhere between Rs 1400-1500 to Rs 1600-1700 crore, but all depends on market performance as well," he said.

Talking about their return on equity (ROE) for equipment finance business, he said it is in double digits again and it has fallen down due to infra business not doing well in the last couple of years – construction, mining, equipment business etc have picked up, EPC contracts have also been awarded and so equipment business is doing good.

Moreover, the company has also been able to curtail the non-performing assets (NPAs) as recoveries improved. All this lead to good RoEs, profitability etc, he said.

He said the equipment finance business is into fast moving infrastructure goods (FMIG) and the average tenure of loans are of two and half years, so the recoveries are also fast and disbursements are high.
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