Kolkata-based Srei Infrastructure Finance has decided to merge its associate company Quippo Infrastructure Equipment with it, to integrate its infrastructure business under one umbrella.
The shareholders of Quippo, in which Srei holds a 17 per cent stake and the Kanoria family 58 per cent stake, will receive three shares for every two shares held. Promoters' shareholding in Srei would also go up from 30 per cent at present to 46 per cent after the merger, said Hemant Kanoria, chairman and managing director, Srei Infrastructure Finance. The networth of the combined entity would be close to Rs 2,000 crore, he said. The net worth of Srei as on March 2009 was Rs 750 crore.
Quippo's business activity involves, construction equipment rental, energy rental, oil an gas equipment rental and telecom tower infrastructure rentals. The merger process is scheduled to take place before start of the next financial year. Notably, Quippo Infrastructure has about five subsidiaries under it, including Quippo Telecom Infrastructure Ltd (QTIL), which had picked up 49 per cent stake in Wireless Tata Telecom Infrastructure (WTTL), Tata Teleservices’ tower arm. After the merger, all the subsidiaries will come under the Srei banner.
Srei will issue bonus shares at a ratio of four for every five shares held.
