SREI Infra hits the roof
![No Image](https://images.sptulsian.com/articles/-SREI-Infra-hits-the-roof.png)
Within minutes of opening today morning, SREI Infrastructure hit the 20% UC at Rs.7.02 and stays frozen there. Volumes have jumped up 8.5 times. Its 52-week high is at Rs.10.15.
The stock hit the roof on news that it has received expression of interest for up to $ 250 million capital infusion in the company.
The international private equity funds are US-based Arena Investors LP and Singapore's Makara Capital Partners. The company's Strategic Coordination Committee, chaired by Mr. 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.
Ernst & Young will be advising the committee on the proposed fund raising exercise.
The SCC is running an independent process for investor identification and has received expression of interest from Arena Investors LP and Makara Capital Partners. This process is being carried out in parallel to the debt realignment plan. The SCC will engage in discussions with the potential investors to raise fresh capital for the business, which will provide cushion against the pandemic induced stress in the Indian financial services space.
The SCC will also be the nodal point for a comprehensive cash flow realignment plan with banks and financial institutions and for all external service providers, including investment bankers, lawyers and consultants.
SREI owes around Rs 18,000 crore to around 15 banks, major ones being Axis Bank, Uco Bank and SBI.