Srei Equipment Finance Limited (“SEFL”) said that it has received expression of interest for up to USD 250 million capital infusion in the company. The international private equity (“PE”) funds are US-based Arena Investors LP and Singapore’s Makara Capital Partners.
The company’s Strategic Coordination Committee (“SCC”), chaired by Malay Mukherjee, Independent Director, will coordinate, negotiate and conclude discussions with the PE investors to bring the capital into the business and advise the management. Ernst & Young (“E&Y”) will be advising the committee on the proposed fund raising exercise.
Arena Investors LP is a multi-strategy investment firm with USD 2.2 billion of committed capital. The firm’s investment mandate is global, and also unconstrained in terms of asset class and industry. It provides creative solutions for those seeking capital in special situations.
Makara Capital Partners is a global financial services company under the regulatory purview of the Monetary Authority of Singapore (“MAS”). Founded in 2005, Makara Capital specializes in fund management, private equity as well as structuring and financing with a core focus on innovation, infrastructure and energy.
The SCC is running an independent process for investor identification and has received expression of interest from Arena Investors LP and Makara Capital Partners. This process is being carried out in parallel to the debt realignment plan. The SCC will engage in discussions with the potential investors to raise fresh capital for the business, which will provide cushion against the pandemic induced stress in the Indian financial services space.
The SCC will also be the nodal point for a comprehensive cash flow realignment plan with banks and financial institutions and for all external service providers, including investment bankers, lawyers and consultants.