SREI Infra - Venturing Into Housing Finance
Srei To Buy Out Peerless Abasan
Kolkata-based Srei group, one of the leading players in the country in infrastructure finance, is entering the housing finance sector. The group is acquiring Peerless Abasan Finance Ltd, the housing finance arm of Peerless Finance & Investment Company, one of the biggest NBFCs in India.
Sources in the housing finance industry said that the Srei group would acquire Peerless Abasan through Shristi Infrastructure Development Corporation Ltd (SIDCL). When contacted, the managing director of Peerless, S K Roy, said the group had entered into an agreement with Srei for Peerless Abasan. SIDCL is the housing and infrastructure development arm of Srei. SIDCL is engaged in developing townships, malls, housing and other physical infrastructure in West Bengal and other states in eastern region.
"This will mark the exit of Peerless group from the housing finance sector. In contrast, Srei will enter into the retail as well as institutional housing finance sector," said sources. Another leading NBFC player in the country Sahara has already floated a housing finance company called Sahara Housing Finance Ltd. According to sources, after the acquisition, Srei would reorganise the capital of the company. "Swap ratio of 2:1 i.e. 2 equity shares of Rs 10 each in the Company for every 1 equity share of Rs 10 each in Shristi Infrastructure Development Corporation Ltd has been proposed," added sources.
According to sources, Peerless Abasan has a networth of Rs 20 crore and a loan portfolio of around Rs 10-15 crore. The Peerless group used to have around 49 per cent stake in Peerless Abasan. The entry of Srei group into housing finance would complete its finance portfolio. The group currently has a presence in venture capital, merchant banking and stock broking along with infrastructure finance and leasing.
Kolkata-based Srei group, one of the leading players in the country in infrastructure finance, is entering the housing finance sector. The group is acquiring Peerless Abasan Finance Ltd, the housing finance arm of Peerless Finance & Investment Company, one of the biggest NBFCs in India.
Sources in the housing finance industry said that the Srei group would acquire Peerless Abasan through Shristi Infrastructure Development Corporation Ltd (SIDCL). When contacted, the managing director of Peerless, S K Roy, said the group had entered into an agreement with Srei for Peerless Abasan. SIDCL is the housing and infrastructure development arm of Srei. SIDCL is engaged in developing townships, malls, housing and other physical infrastructure in West Bengal and other states in eastern region.
"This will mark the exit of Peerless group from the housing finance sector. In contrast, Srei will enter into the retail as well as institutional housing finance sector," said sources. Another leading NBFC player in the country Sahara has already floated a housing finance company called Sahara Housing Finance Ltd. According to sources, after the acquisition, Srei would reorganise the capital of the company. "Swap ratio of 2:1 i.e. 2 equity shares of Rs 10 each in the Company for every 1 equity share of Rs 10 each in Shristi Infrastructure Development Corporation Ltd has been proposed," added sources.
According to sources, Peerless Abasan has a networth of Rs 20 crore and a loan portfolio of around Rs 10-15 crore. The Peerless group used to have around 49 per cent stake in Peerless Abasan. The entry of Srei group into housing finance would complete its finance portfolio. The group currently has a presence in venture capital, merchant banking and stock broking along with infrastructure finance and leasing.
posted by Raj @ 12:04 PM
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