Srei Infra surges over 8% in trade
Mumbai: Stocks of Srei Infrastructure Monday surged more than eight percent in morning trade on bourses after the company said it is planning to raise USD 500 million through its going infrastructure debt fund.
Srei Infrastructure is planning to raise USD 500 million through its infrastructure debt fund which is likely to be launched as early as January next year.
Reacting on the development, shares of the company opened on a bullish note and then surged 8.2 percent to an early high of Rs 37.60 on the BSE.
The stock has rallied more than 33 percent in the last five trading sessions, since November 9 -- the day it announced its September quarter results.
Market analysts said the strong rally in the counter is largely owing to the fact that the company has already received the Certificate of Registration from market regulator SEBI for its infrastructure debt fund. Moreover, the company also posted bullish earnings.
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 percent to Rs 788 crore.
"Srei plans to raise around USD 500 million for its Infrastructure Debt Fund through the MF route," Srei Infrastructure Finance CMD Hemant Kanoria had said, adding that the fund will be launched in the fourth quarter of FY13.
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.
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 USD 1 trillion will be required during the next five years for developing the country's infrastructure.