Srei

In 1989, brothers Hemant and Sunil Kanoria founded Srei Infrastructure Finance, starting a journey to help build India's infrastructure. The company identified a critical need: financing for infrastructure projects and equipment, a market that was just beginning to open up. Srei's core business involved providing financial solutions, including loans and leasing for construction and mining equipment, and advising on infrastructure projects. A key moment arrived in 1992 when Srei launched its Initial Public Offering (IPO), listing on major Indian stock exchanges and signaling its arrival as a serious player in the financial sector. The company grew to become a dominant force in equipment financing, at one point financing a significant portion of the construction and mining equipment sold in the country. Over the years, it formed strategic partnerships, including a notable joint venture with Europe's BNP Paribas Lease Group in 2008. The company's trajectory shifted dramatically in October 2021. Citing governance concerns and payment defaults, the Reserve Bank of India (RBI) superseded the boards of Srei Infrastructure Finance and its subsidiary, Srei Equipment Finance. This led to the initiation of an insolvency process to resolve the company's significant debt. After a bidding process, the state-backed National Asset Reconstruction Company (NARCL) emerged as the winner. In late 2023, NARCL completed the acquisition of the two Srei companies under the Insolvency and Bankruptcy Code, marking one of the largest resolutions of its kind. The acquisition aimed to resolve financial debt amounting to approximately ₹32,700 crore and revive Srei's equipment lending business under new management.