SREI Infrastructure Finance may write off Rs 360 crore as 2 debtor companies enter liquidation
MUMBAI: SREI Infrastructure FinanceNSE -1.58 % faces write-off of nearly Rs 360 crore as two debtor companies enter liquidation and a third approaches the end of resolution time.
SREI’s loans financed the purchase of Viom Networks shares by these companies.
Confident Solar and Resurgent Infratel repaid some money to SREI when Viom shares were sold in 2016.
SREI Infrastructure initiated insolvency proceedings against these companies and Right Towers earlier this year.
These companies have no other operations. After sale of Viom shares as per MCA records, they do not have assets either. Viom is now part of American Tower Corp’s India arm.
In its application, SREI Infrastructure said the loans were issued in 2015 and were pending part repayment, said two people familiar with the Kolkata filings. From 2011onwards SREI Infra has been the sole or main lender to all three companies.
These companies bought shares from some other group companies and other investment companies, who made profit in 2011and 2012.
In 2011-12, these companies bought Viom shares at Rs 210-230 apiece from some other investors. From the shareholding pattern of Viom, it appears the sellers include Singapore-based Roaring Investments and Axios Investments, besides Indian firms Akshalya Trust, Quippo Telecom Infra, Opulent Venture Capital Trust, and Quippo Infra Equipment.
SREI declined to comment. “This is an old issue, where all transactions were consummated in 2015… There are no further details that we have.” Resolution professional Rakesh Kumar Agarwal, appointed on all three companies’ insolvency case, did not offer comment.
The scheme of amalgamation of Viom Networks, a joint venture between Tata Teleservices and SREI Group, shows the original issue price of the shares at Rs 162.
The sellers to Confident Solar, Resurgent Infratel and Right Towers made a 30-42% returns by 2012 by these calculations.
The merger of Tata Teleservices’ spunoff tower arm and Quippo Telecom Infrastructure (now Preference Telecom Infra) formed Viom Networks in August 2009. Quippo Telecom was a subsidiary of SREI Infrastructure Finance.
Quippo Telecom Infra has since been renamed Preference Telecom Infratructure and shares common directors with Resurgent Infratel, Right Towers and Confident Solar. Quippo Infra Equipment has been merged with another company but had SREI Group vice-chairman Sunil Kanoria as its managing director.
Source: economictimes.indiatimes
