Srei arm launches fund for stressed assets

India Vision Fund will invest in debt or mezzanine instruments of cos having future opportunities

Srei Alternative Investment Manager, an Srei venture, is planning to launch a Rs 2,000 crore fund which will invest in stressed assets across sectors. Srei has already approached a number of domestic and foreign investors to invest to the fund. The fund, namely, India Vision Fund, will invest in debt or mezzanine instruments of companies having future opportunities.

"India Vision Fund will primarily concentrate on those companies which can be revived through proper nursing. The fund will purchase assets or loans and invest by way of debt and other instruments, which will be taken over from corporates, banks, NBFCs, or even Asset Reconstruction Companies (ARCs)," said a press release from the company.

"The fund will buy assets with turnaround potential providing investors an opportunity to earn good returns on their investments. We have approached many investors, both domestic and international, and they have expressed keen interest to invest. Some of them are at an advanced stage of investment," said Nalin Kumar, CIO, SAIML.

The fund has also initiated talks with companies and banks for buying stressed, looking at opportunities where resurrection is possible.

In October 2015, Srei Infrastructure Finance announced selling its stake 18.26% stake (jointly held by Srei and the Kanoria block) in Viom Networks to American Tower Corporation for Rs 2,952 crore. Srei's own consideration including non-compete fee in sale will be Rs 1,790 crore.

Notably, Srei's investment in Viom was Rs 1,598 crore, according to investor presentation, September 2015, Srei Infrastructure.

In December 2015, Srei announced that BNP Paribas Lease Group, a 100% subsidiary of BNP Paribas Group, has decided to sell its entire 50% stake in Srei Equipment Finance Limited (SEFL) to Srei Infrastructure Finance.

In exchange, BNP Paribas acquired five% in Srei Infrastructure Finance, which will now be the parent company of SEFL.