Srei Equipment Finance on Friday said Singapore-based Makara Capital Partners Pte Ltd has shown interest to invest up to Rs 2,200 crore by picking up equity and other securities in the company.
The company, a fully-owned subsidiary of Kolkata-based Srei Infrastructure Finance, is looking to raise money, mainly after the coronavirus-induced economic downturn impacted its financials.
"This is to inform that the Strategic Coordination Committee has received a term sheet from Makara Capital Partners Pte Ltd (Makara), Singapore indicating interest for the investment of an aggregate amount of Rs 2,200 crore by way of subscription to equity shares and other securities of the company," Srei Equipment Finance said in a regulatory filing through Srei Infrastructure Finance.
The committee, chaired by an independent director, will evaluate the said offer and make the recommendation to the board, it added.
However, the company did not disclose that how much equity Makara wants to pick up in the firm.
In April this year, Srei Equipment Finance had informed about getting the expression of interest (EOI) of up to USD 250 million (Rs 1,856.41 crore as per June 18, 2021, conversion rate) capital infusion from US-based Arena Investors LP and Singapore's Makara Capital Partners.
Notably, the monetary interest evinced by Makara in Srei Equipment Finance exceeds the interest shown by both Makara and Arena in April.
The company's Strategic Coordination Committee (SCC) is chaired by independent director Malay Mukherjee.
Mukherjee has been tasked to coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management.
Besides, Ernst & Young (EY) has been roped in to advise the committee on the proposed fundraising exercise, which is being carried out in parallel to the company's debt realignment plan.
Srei Equipment Finance (SEFL), an unlisted entity, provides financing for construction and mining equipment.
Shares of Srei Infra closed 9.94 per cent higher at Rs 14.49 apiece on BSE.