Intrinsic Value

Stock has not been able to generate better return on equity than bank FD

Returns vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Red Flags Found

SREI Infrastructure Finance Ltd (SIFL), which owns 51 per cent equity in the fund management firm Trinity Alternative Investment Managers Ltd, is anticipating dilution of its shareholding in the subsidiary after its right issue.

NCLAT asks NCLT to decide on SREI Infrastructure Finance plea

NCLAT has asked the Kolkata bench of NCLT to decide over the plea of SREI Infrastructure Finance against the rights issue of its subsidiary Trinity Alternative Investment Managers

NCLT to decide on rights issue plea against Trinity Alternative Investment

A two-member NCLAT bench, while disposing of SREI Infrastructure Finance Ltd (SIFL) petition observed that the National Company Law Tribunal (NCLT) has ordered a status quo and is yet to pass any order over the plea filed by the non-banking financial company.

NCLAT directs NCLT to decide over SREI’s plea against rights issue of Trinity Alternative Investment

SIFL had sought an injunction against Trinity from proceeding with the rights issue as “it was being issued with a motive to dilute the shareholding of the appellant (SIFL) in the respondent company (Trinity)”. The NCLT had ordered “status quo” in its December 6 order.

Rights issue by subsidiary: NCLAT leaves it to NCLT bench to decide on Srei Infrastructure Finance plea

On October 4, 2021, the Reserve Bank of India (RBI) superseded the boards of the group firms -- Srei Infra Finance and Srei Equipment Finance

Trinity Alternative says no illicit transactions with Srei Group entities

Srei Infrastructure Finance, the main Srei company, holds 51% in Trinity, and the balance 49% equity is held by Payaash Capital, a Singapore-based entity.

RBI-appointed administrator moves court to retain Srei control over Trinity

SREI Infrastructure Finance reports consolidated net loss of Rs 1968.85 crore in the September 2021 quarter

Zqube Infracon was declared the highest bidder for the commercial property in Powai, Mumbai — which had been mortgaged to Srei Infrastructure Finance (SIFL) — after an e-auction on August 11. SIFL had engaged iQuippo as the auctioneer to sell the property, whose owner is Supreme Infrastructure India…

Top bidder for property seeks NCLT order to direct Srei administrator on title transfer

Lenders to the bankrupt Srei Group are hoping that consolidation of the two debt-laden companies - Srei Infrastructure Finance and Srei Equipment Finance - will enhance its value and ensure a better recovery for ₹30,000 crore in stuck dues.

A merger of Srei companies’ debt could boost recovery

“Sandeep Kumar Sultania has ceased to be the chief financial officer of the company with effect from close of business hours of December 7, 2021, to take up a new role within the company,” Srei said in a regulatory filing.

Sandeep Kumar Sultania ceases to be chief financial officer of Srei Infrastructure Finance

The SREI Group is one of India’s leading finance and leasing institutions. The company’s two subsidiaries - SREI Infrastructure Finance and SREI Equipment Finance - are mirror images of default and bankruptcy. It’s said both the companies owe nearly Rs 36,000 crore to the banks.

Teji Mandi Explains: Defaulting times of SREI Group

Srei Infrastructure Finance Limited is an infrastructure finance company engaged in the business of financing of companies or of providing infrastructural facilities.

Srei Infrastructure Finance Ltd

Srei Infrastructure Finance Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

NCLAT asks NCLT to decide on SREI Infrastructure Finance plea

NCLT to decide on rights issue plea against Trinity Alternative Investment

NCLAT directs NCLT to decide over SREI’s plea against rights issue of Trinity Alternative Investment

Rights issue by subsidiary: NCLAT leaves it to NCLT bench to decide on Srei Infrastructure Finance plea

Trinity Alternative says no illicit transactions with Srei Group entities

RBI-appointed administrator moves court to retain Srei control over Trinity

SREI Infrastructure Finance reports consolidated net loss of Rs 1968.85 crore in the September 2021 quarter

Top bidder for property seeks NCLT order to direct Srei administrator on title transfer

A merger of Srei companies’ debt could boost recovery

Sandeep Kumar Sultania ceases to be chief financial officer of Srei Infrastructure Finance

Srei Infrastructure Finance Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

NCLAT asks NCLT to decide on SREI Infrastructure Finance plea

NCLT to decide on rights issue plea against Trinity Alternative Investment

NCLAT directs NCLT to decide over SREI’s plea against rights issue of Trinity Alternative Investment

Rights issue by subsidiary: NCLAT leaves it to NCLT bench to decide on Srei Infrastructure Finance plea

Trinity Alternative says no illicit transactions with Srei Group entities

RBI-appointed administrator moves court to retain Srei control over Trinity

SREI Infrastructure Finance reports consolidated net loss of Rs 1968.85 crore in the September 2021 quarter

Top bidder for property seeks NCLT order to direct Srei administrator on title transfer

A merger of Srei companies’ debt could boost recovery

Sandeep Kumar Sultania ceases to be chief financial officer of Srei Infrastructure Finance

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock