Interest income at Rs 581 crore nearly halved from Rs 1075 crore over the same period with fall in businesses amid the pandemic.
The group’s annual loss stood at Rs 7338 crore for FY21 against Rs 89 crore net profit in the preceding fiscal. Total income for the year fell to Rs 3,488 crore against Rs 6120 crore on consolidated assets under management of Rs 39,498 crore.
Srei board has on Thursday passed a resolution to raise up to Rs 2,500 crore in one or more instruments.
The group said it has received a term sheet from Singapore’s Makara Capital Partners for investment of Rs 2,200 crore. It has also received a term sheet from USA-based Arena Investors LP for investment of Rs 2,000 crore. The company also announced receiving expressions of interest from several other global private investment firms, including Cerberus Global Investments, Charlestown Capital Advisors, CarVal Investors LP, Varde Partners Asia Pte Ltd and Maystone Capital.
The outbreak of coronavirus in India in 2020 and the peaking of the second wave of the pandemic in 2021 have severely affected MSME construction companies and infrastructure companies. With infrastructure activities significantly slowing down, claims and arbitration awards getting delayed, cash flows of Srei’s borrowers have been affected, which has resulted in a debilitating situation for all, the company said.
It has made consolidated provisions of Rs 5,513 crore during the year ended March 31, 2021, leading to the yearly net loss.
Meanwhile, the company has appointed former Reserve Bank of India executive director Deepali Pant Joshi as an independent director on its board.
