BNP Paribas buys stake in Srei Infrastructure, shares shoot up

 

According to the agreement, BNP Paribas would acquire 2.51 crore shares of Srei Infrastructure Finance representing five per cent of the total paid up capital of the company. In return, BNP Paribas Lease Group (BPLG) would sell its entire 50 per cent stake in Srei Equipm-ent Finance to Srei Infra. 

 

“In order to take advantage of the emerging opportunities in the infrastructure sector in India, BPLG desires to become a shareholder in Srei. This would enable BPLG to gain exposure to and take advantage of the larger infrastructure play in the country. Further, Srei would benefit by having BNP Paribas as a shareholder coupled with the dual advantage of Srei holding 100 per cent shareholding in SEFL. This would enable Srei to consolidate 100 per cent of the financial results of the infrastructure equipment finance business,” the company said. 

 

The shares of Srei Infra finally closed the day at Rs 58.60 on the BSE, gaining 13.35 per cent or Rs 6.90. Srei expects the transaction to be completed by the end of March 31, 2016. The total AuM of SEFL stood at Rs 18,747 crore as of September 30, 2015. The company had reported a net profit after tax (PAT) of Rs 27.62 crore during the quarter.