SREI Infrastructure Finance rose 4.33% to Rs 44.60 at 12:08 IST on BSE on reports that SREI group will exit Viom Networks.
Meanwhile, the BSE Sensex was down 1.70 points, or 0.01%, to 25,200.20.
On BSE, so far 4.55 lakh shares were traded in the counter, compared with an average volume of 2.47 lakh shares in the past one quarter.
The stock hit a high of Rs 46.05 and a low of Rs 44.10 so far during the day. The stock hit a 52-week high of Rs 55.35 on 3 March 2015. The stock hit a 52-week low of Rs 29.90 on 9 June 2015.
The stock had outperformed the market over the past one month till 4 September 2015, rising 11.76% compared with 10.22% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.80% as against Sensex's 6.01% decline.
The small-cap company has an equity capital of Rs 503.09 crore. Face value per share is Rs 10.
According to media reports, American Tower Corporation (ATC) is set to acquire a majority stake in bigger Indian telecom tower rival Viom Networks that will see the Tata group retain a minority stake. The SREI group, which has management control in Viom with a minority stake, will exit Viom completely, reports said.
Tata Teleservices has a 54% stake in Viom and SREI owns 18.5% while the rest is held by private equity (PE) firms Macquarie SBI Infrastructure, GIC Investments, IDFC Private Equity and Funderburk Mauritius (Oman Investment Fund). The PE firms, which were brought in by SREI, need to sell their stake since their seven-year gestation period is over, reports added.
The Tata group, currently the majority owner, will retain up to 26% stake as assurance to ATC that the acquired company will be given tower leasing contracts from telco Tata Teleservices on a preferential basis. ATC will hold the rest while SREI and other private equity firms are set to exit, reports added.
Viom Networks, a Tata Teleservices and SREI Infrastructure joint venture, is India's largest independent telecommunications infrastructure company. The company enjoys strategic relationships with all leading telecom operators in India - Tata Teleservices, Bharti Airtel, Aircel, MTS, Vodafone, Idea, Uninor and BSNL among others. The company has over 100,000 tenancies on over 42,000 towers spread across India.
On a consolidated basis, net profit of SREI Infrastructure Finance declined 63.55% to Rs 23.32 crore on 14.8% decline in total income to Rs 798.51 crore in Q1 June 2015 over Q1 June 2014.
SREI Infrastructure Finance is a leading infrastructure financing conglomerate in India.
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