Nilanjan Dey

Kolkata , June 15

THE Srei Infrastructure Finance stock has started trending upwards, thanks to investors who are flocking to it in the hope of leveraging the market's current penchant for select infrastructure-related counters.

The stock today reached a new 52-week high of Rs 66.95 before closing at Rs 64.90 on the NSE. The total traded quantity on the exchange stood at over 53 lakh shares.

The company, which recently dropped the suffix `International' for `Infrastructure', has seen a series of major developments, all of which are said to have unlocked value. These, indicate investors, range from the issue of GDRs to the unveiling of a Rs 1,000-crore fund for investment in globally-competitive Indian companies.

The Kolkata-based stockbroker, Mr D.P. Poddar, said the market had started to acknowledge Srei's presence in the infrastructure space. The market, he said, was also aware of the potential of several companies operating in it at the moment.

For instance, Nagarjuna Construction, a multi-bagger in the last year, climbed from Rs 150 levels in March 2004 to nearly Rs 875 in May this year. The stock closed at Rs 786.15 on Wednesday on the NSE.

Srei, according to Mr Hemant Kanoria, Vice Chairman and Managing Director, has moved from strength to strength in the recent past. "Construction equipment financing, one of our thrust areas, has emerged as a very significant activity," he said. The company had also attempted to shore up its fee-based activities, he added.

The company, in which the promoters held roughly 31 per cent, as on March 31, had a number of institutional partners, which added credibility, at least to a section of the market, noted Mr Rajiv Bose of KPC Securities, a local broking firm.

He was referring partially to the overseas financial institutions such as FMO of the Netherlands — that had been associated with Srei.

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