Srei Infra hits 52-week high as BNP Paribas to acquire 5% stake

Srei Infrastructure Finance spurted 13.15% to Rs 58.50 at 15:23 IST on BSE after the company said it has entered into a share purchase agreement with BNP Paribas Lease Group and other stakeholders for sale of its 5% stake to BNP Paribas Lease Group.

The announcement was made during market hours today, 29 December 2015.

Meanwhile, the S&P BSE Sensex was up 40.96 points or 0.16% at 26,075.09.

The stock zoomed on heavy volumes. On BSE, so far 41.77 lakh shares were traded in the counter as against average daily volume of 3.87 lakh shares in the past one quarter.

 

The stock hit a high of Rs 61.40 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 51.70 so far during the day. The stock had hit a 52-week low of Rs 29.90 on 9 June 2015.

The stock had outperformed the market over the past one month till 28 December 2015, surging 12.39% compared with Sensex's 0.36% fall. The scrip had also outperformed the market in past one quarter, advancing 19.4% as against Sensex's 1.63% rise.

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

Srei Infrastructure Finance (Srei), BNP Paribas Lease Group (BPLG), Srei Equipment Finance (SEFL), Hemant Kanoria and Sunil Kanoria have entered into a share purchase agreement (SPA) whereby BPLG has agreed to acquire 2.51 crore equity shares of Srei, representing 5% of the total paid-up equity capital. In lieu thereof, BPLG will sell its entire shareholding of 2.98 crore shares of SEFL representing 50% of the total paid-up equity capital to Srei in accordance with applicable laws. SEFL is a 50:50 joint venture (JV) between Srei and BPLG. Funds received by Srei from 5% stake-sale will be used for acquisition of additional 50% stake in SEFL. Post these transactions, Srei will hold 100% of the total paid-up equity share capital of SEFL. The transaction is expected to be consummated by 31 March 2016, subject to necessary approvals.

The total assets under management (AUM) of SEFL stood at Rs 18747 crore as on 30 September 2015.

Hemant Kanoria and Sunil Kanoria held 0.08% and 0.36% stake respectively in Srei Infrastructure Finance as per the shareholding pattern as on 30 September 2015.

On consolidated basis, Srei Infrastructure Finance's net profit fell 59% to Rs 11.50 crore on 2.1% growth in total income to Rs 851.48 crore in Q2 September 2015 over Q2 September 2014.

Srei Infrastructure Finance is a leading infrastructure financing conglomerate in India.

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