The disinvestment of Quippo would be part of the promoters' ongoing strategy to exit its investments across sectors
The Kanorias are planning to sell off part of their investments in the Srei subsidiaries engaged in equipment rental businesses operated under the brand Quippo.
"Our objective is to sell our investments except the business which are strategic in nature. Apart from these, our other investments primarily in roads, and Sahaj and some Quippo businesses (need to be divested). Quippo would take time as it has just started to turn profitable," Srei Infrastructure vice chairman Sunil Kanoria has told analysts.
The disinvestment of Quippo would be part of the promoters' ongoing strategy to exit its investments across sectors.
Kanorias had previously expressed their intention to divest their investments in road portfolio which has been clubbed under the newly-formed arm Bharat Road Network and also rural service centre business managed by Sahaj eVillage Ltd.
The businesses under the Quippo brand are held through two subsidiaries - Quippo Oil and Gas Infrastructure Ltd and Quippo Energy Ltd - which provide equipment on wet lease.
While Quippo Oil and Gas provides rigs on hire, Quippo Energy has a fleet of gas based gensets, boilers and chillers.
"Our rental business under Quippo consists of Quippo energy rental and oil and gas. The oil and gas has turned positive with most of the rigs now being deployed. From this quarter, we expect these to contribute. The energy rental is basically on break-even basis. With gas getting available, we have started to get enquiries and hope to convert them into realisations," Kanoria said.
However, before Srei starts looking for buyers for its rental businesses, Kanorias would try to sell off its roads holding the company and Sahaj, the processes for which have already began.
"We are going for a listing of our road portfolio which is being restructured and consolidated into one platform. We will look at (Quippo) how it evolves. But roads and Sahaj are the ones we are targeting to divest as fast as possible," Kanoria said.
Srei currently has about Rs 1,100 crore in strategic investments spread across these businesses.
Quippo Telecom's tower business, converted into a JV with the Tatas, was sold off to American Tower Co in 2015.
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