Srei Infrastructure gets stronger on proposed IPO of subsidiary

Srei Infrastructure Finance gained 1.92% to Rs 121.95 at 14:55 IST on BSE after the company announced proposed initial public offering of equity shares of its wholly owned subsidiary Srei Equipment Finance.

The announcement was made during market hours today, 17 August 2017.

Meanwhile, the S&P BSE Sensex was up 116.16 points or 0.37% at 31,887.05. The S&P BSE Mid-Cap index was down 11.15 points or 0.07% at 15,271.19.

High volumes were witnessed on the counter. On the BSE, 5.18 lakh shares were traded on the counter so far as against the average daily volumes of 3.02 lakh shares in the past one quarter. The stock had hit a high of Rs 127.30 and a low of Rs 119.20 so far during the day. The stock had hit a 52-week high of Rs 137.70 on 21 July 2017 and a 52-week low of Rs 63.05 on 29 September 2016.

The stock has gained 12.55% in four sessions to its ruling price from a close of Rs 108.35 on 10 August 2017.

The stock had outperformed the market over the past one month till 16 August 2017, rising 4.73% compared with the Sensex's 0.78% decline. The stock had also outperformed the market over the past one quarter, gaining 6.83% as against the Sensex's 3.89% rise. The scrip had also outperformed the market over the past one year, gaining 66.07% as against the Sensex's 13.21% rise.

The mid-cap company has equity capital of Rs 503.09 crore. Face value per share is Rs 10.

Srei Infrastructure Finance said that the board of directors of Srei Equipment Finance (SEFL), wholly owned subsidiary of the company approved to evaluate, subject to approval of its board, shareholders, market conditions and receipt of requisite approvals from statutory and other authorities, an initial public offering (IPO) of upto 25% of the post-issue paid-up equity share capital of SEFL.

SEFL is industry leader in infrastructure and construction equipment financing.

SREI Infrastructure Finance's consolidated net profit rose 48% to Rs 76.32 crore on 5.5% rise in total income to Rs 1191.32 crore in Q1 June 2017 over Q1 June 2016.

SREI Infrastructure Finance is a leading integrated infrastructure financing conglomerate in India. The company's businesses include infrastructure finance, advisory and development, infrastructure equipment finance, alternative investment funds, capital markets and insurance broking.

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