Shriram Capital eyes infra biz,likely to start with power

“The opportunities in infrastructure are tremendous. We plan to enter the infrastructure space,most likely over the next 12 months. However,we have so far not structured anything. We will use some of our capital to promote the business,” Shriram Capital Chairman Arun Duggal said.

Though the company is yet to draw up a specific plan for its infrastructure venture,Shriram is eyeing opportunities in the power sector.

“As much as 65 per cent of the opportunity lies in the power sector. We are looking at this on a priority. However,other segments such as roads,ports and shipping also hold enormous potential,” Duggal said.

The government had recently said the infrastructure sector needs about Rs 4,05,000-crore investment over the next five years of which Rs 2,02,500 crore would be coming from the private sector. On its proposed stake sale to leading private equity firm Texas Pacific Group (TPG),Duggal said,”Nothing has been finalised as yet.”

There has been speculation that Shriram Capital is contemplating selling about 20 per cent equity stake to TPG for Rs 1,000 crore.