Mumbai, July 11, 2018 (GPN) : Srei Equipment Finance Limited (“SEFL”), one of India’s largest equipment financing institutions, today announced that CARE Ratings has upgraded its rating on the company’s Long term Facilities to ‘CARE AA’ with Stable Outlook enhanced from ‘CARE AA-‘ with Positive Outlook.
The rating upgrade factors the overall improvement in the financial risk profile of SEFL marked by significant growth in disbursements in financial 2017-18 (refers to the period April 1 to March 31), improvement in profitability, collection efficiency and asset quality indicators.The rating upgrade also factors in continuous reduction in net non-performing assets (“NPAs”)standard restructured assets, assets acquired in satisfaction of debt and repossessed assets as a percentage of networth.
The ratings are strengthened from the company’s established position and expertise in construction and mining equipment (“CME”) financing segment, experienced promoters, well-established business network with large customer base and presence of the group across the industry value chain.
Commenting on the rating upgrade, Devendra Kumar Vyas, CEO, SEFL, said: “The rating upgrade reaffirms SEFL’s continued dedication to create maximum value for our stakeholders. Our nearly three decades of market experience, ability to assess risks efficiently and strong business model based on customer centricity have helped us grow profitably.We believe that we are strongly placed to derive value from the on-going growth in the infrastructure sector due to favourable macro environment arising from the government’s focus in this area. This upgrade is a result of strong business fundamentals and will help us in diversification of resource base and reduce cost of funds.”
About Srei Equipment Finance Limited (SEFL):
Srei Equipment Finance Limited (“SEFL”), a wholly owned subsidiary of Srei Infrastructure Finance Limited (“Srei”) is an industry leader in the construction, mining and allied equipment (“CME”) finance space, with an approximate market share of 32.7% in fiscal 2017 (Source: Feedback Report). The company enjoys a pan India presence with 89 branches and 4 offices as of September 30, 2017. SEFL has an experienced management team having significant expertise in the financial services sector. The company has assets under management (“AUM”) of Rs 26,525 crore for the six months ended September 30, 2017.
“SREI Equipment Finance Limited (the “Company“) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed a Draft Red Herring Prospectus dated November 28, 2017 with the Securities and Exchange Board of India (“SEBI”). The Draft Red Herring Prospectus is available on the websites of SEBI and the book running lead managers to the Offering, i.e. ICICI Securities Limited, Srei Capital Markets Limited, CLSA India Private Limited, Credit Suisse Securities (India) Private Limited, Haitong Securities India Private Limited, IIFL Holdings Limited, Motilal Oswal Investment Advisors Private Limited at www.sebi.gov.in, at www.icicisecurities,com, ww
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