Srei likely to float infra debt fund by January
Nov 16 2012 , Mumbai
"We have just received the approval from Sebi for launching an IDF through the mutual fund route. We will start the process now and are hopeful of launching the scheme in January," Srei Chairman and Managing Director Hemant Kanoria told PTI over phone from Kolkata today.
He, however, said it is difficult to say how much the company is planning to raise through this route.
"It's still early days. We have just received the approvals. These things will be finalised later," Kanoria said, adding he is expecting "sound" response to the fund.
"IDF is required as the country is set to invest huge amounts into the infra sector and banks are close to hit their infra exposure limit. So, the IDF should get sound response from investors."
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 $1 trillion will be required during the next five years for developing the country's infrastructure.
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 per cent at Rs 788 crore from Rs 588 crore in the same period of the previous fiscal.