A dumper truck loaded with excavated iron ore rock exits an iron ore mine. (Photographer: Vincent Mundy/Bloomberg)

SREI Equipment Finance’s IPO To Draw Investor Interest, Says Hemant Kanoria

SREI Equipment Finance Ltd.’s initial public offering, a first in equipment financing space, is expected to draw significant investor interest, according to Chairman Hemant Kanoria.

Construction and mining industries, he said, will be the key growth drivers, besides the agricultural, information technology and healthcare sectors. Kanoria expects the company to continue to see an improvement in disbursements and profitability growth, and reduction in bad loans.

The maiden offer will be a combination of fresh issue and offer-for-sale. The company will decide on the IPO launch time, size and pricing after discussions with investment bankers, and depending on market conditions.

The company, the wholly owned subsidiary of SREI Infrastructure Finance Ltd., received the Securities and Exchange Board of India’s nod on Monday to launch the public offer within 12 months.