Mumbai: Srei Equipment Finance Ltd, a wholly-owned subsidiary of Srei Infrastructure Finance Ltd, on Tuesday filed its so-called draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).

According to the DRHP, the share sale includes a fresh issue of Rs1,100 crore, while Srei Infrastructure Finance will offer 4.4 million shares in an offer for sale.

Srei Equipment Finance offers loans for purchase of equipment for construction and mining, earth-moving, material handling, road construction, concrete mixing and material processing.

In the year to March, Srei Equipment Finance clocked Rs2,495.33 crore in revenue and a net profit of Rs148.84 crore. It is the first subsidiary of Srei Infrastructure Finance to file a draft prospectus for an IPO. The filing of Srei Equipment Finance’s DRHP also comes at a time when the Indian capital market has been witnessing a spurt in IPOs.

This year, IPO fundraising has breached the all-time high seen in 2010, where 64 companies raised Rs37,534.65 crore. Until October this year, the Indian primary market has witnessed 30 IPOs with companies raising Rs47,099 crore, according to data from primary market tracker Prime Database. In 2016, 26 companies raised Rs26,493.8 crore through the IPO route.

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