GIC Special Investments, Singapore and IDFC Private Equity have picked up around 15.5% share each, totaling 31%, in Quipo Infrastructure Equipment Ltd (QIEL) for Rs 150 crore.
KOLKATA: GIC Special Investments, Singapore and IDFC Private Equity have picked up around 15.5% share each, totaling 31%, in Quipo Infrastructure Equipment Ltd (QIEL) for Rs 150 crore.
Quipo, promoted by Srei Group and one of the largest equipment retail companies in the country, will use the funds to part-finance a capital expenditure plan of over Rs 3,400 crore over the next two years.
Following this, the paid-up equity capital of the company is estimated to be around Rs 90 crore with a total networth around Rs 225 crore. Srei’s shareholding in Quipo has come down to 15.5% from 22%. Dutch FMO and SwedFund hold around 22%, while other shareholders like Ingersoll Rand and other venture capital funds hold the balance.
Apart from internal cash generation, the company plans to go in for various debt options to fund its capex plans. Around Rs 1,200 crore of debt will be raised next fiscal.
“A large part of the capital expenditure of almost Rs 2,000 crore will go towards building almost 6,000 telecom towers across the country. Quipo, through its subsidiary has been involved in the renting of towers to leading telecom operators. With an estimated almost 1.5-2 lakh telecom towers estimated to come up in the country, the business potential is enormous”, Sunil Kanoria, director, Srei Infrastructure Finance Ltd said.
The company is expected to gross a turnover of around Rs 200 crore in the current fiscal and the new business is likely to double revenues from next year.
Satish Mandhana, executive vice-president, IDFC Private Equity, said Quipo has an asset intensive model and there is always better utilisation of asset through time and sharing.
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