Srei Infrastructure is planning to raise $500 million through its infrastructure debt fund which is likely to be launched as early as January next year.
Srei Infrastructure has already received the Certificate of Registration from market regulator Sebi for its infrastructure debt fund.
"We will be targeting fourth quarter of FY'13 for the fund launch wherein investments from the fund can be made only after the closure of New Fund Offer (NFO) as per MF regulation," he added.
The subscription from investors will be obtained via NFO of the scheme and the fund will focus on large investors as the minimum subscription for the fund is Rs 1 crore.
The fund would focus on the sub sectors which provide good regulatory clarity like toll roads, power transmission etc.
"Today, infrastructure sector has good demand of funds and investment opportunities exist in projects at various stages such as brown-field expansion and completed projects. This being the first fund from our stable, we will mitigate risk by focusing on companies/group with good credit profile and track record," Kanoria said.
According to Srei Mutual Fund Asset Management CEO Mohit Sachdev: "Institutions like pension funds, insurance companies and provident funds which have long-term liabilities require investment opportunities with matching cash flows. IDF via the mutual fund (MF) route would make a good investment vehicle for these institutions."
The government has allowed financial institutions to float IDFs through the mutual fund route or structure it as an NBFC to attract long-term savings into the infrastructure sector.
The government has estimated that a whopping $1 trillion will be required during the next five years for developing the country's infrastructure.
Srei Infrastructure reported an over five-fold growth in net profit at Rs 130.20 crore in the second quarter ended September 30, while its consolidated income grew 34% to Rs 788 crore.