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SREI listed on London Stock Exchange
April 21, 2005 17:28 IST
SREI becomes the first Indian company in the infrastructure financing business to achieve this remarkable feat and joins the elite league of Indian corporates who has taken the GDR route to tap overseas resources.
SREI successfully raised $35 million, equivalent to Rs 153 crore (Rs 1.53 billion), through the issue of 8.65 million GDRs, for which the issue closed on April 18, 2005.
The GDR issue was a strategic move by SREI to broad base its investor profile and creating another window for overseas investors to participate in the infrastructure growth in India.
The issue was priced at $4.05, each GDR representing 4 underlying equity shares of the company, the face value being Rs 10 each.
The GDRs were placed through a book building exercise. The proceeds from the offering will be used primarily for funding future growth by strengthening the capital base of the company and thereby increasing its capacity to leverage itself.
At the successful listing on the LSE, Hemant Kanoria, vice-chairman and managing director of SREI from London commented, "This listing is indeed a giant leap forward for SREI. With this we have joined the big league of Indian corporate who have got themselves listed on international stock exchanges."
SREI, during its 16 years of existence, has developed immense expertise in the field of financing of construction equipment and infrastructure projects and also developed in-depth knowledge in infrastructure sectors like roads, power, railways and ports.
SREI is also the leading financier of renewable energy equipment in India. Having established a pan-India presence with a network of 32 offices, SREI has ventured overseas and opened offices in Germany, Russia and U.K.
With a clear infrastructure focus, SREI has been making significant contribution to the process of nation building and has grown at a compounded annual growth rate of over 30 per cent during the last 4 years.
SREI's growth prospects have attracted renowned multilateral & bilateral financial institutions like IFC-Washington, DEG-Germany, FMO-Netherlands and BIO-Belgium to become stakeholders in SREI.