Quippo to raise Rs900 crore to fund Wireless TT Info Services merger
17 August 2009
Telecom tower company Quippo Telecom Infrastructure, a subsidiary of SREI Infrastructure Finance Ltd, is looking at raising Rs900 crore through fresh equity and by selling shares.
The money will go toward funding the merger with Tata Teleservices's (TTSL) Wireless TT Info Services Ltd (WTTIL), the tower joint venture between TTSL and Quippo.
Quippo's major shareholders, IDFC Private Equity, Oman Investment Fund and SREI Infrastructure Finance, will buy the additional shares.
According to Hemant Kanoria, chairman and MD, SREI, the rest of the amount of Rs1,500 crore will come from mezzanine capital and debt.
The company is likely to complete the process by end of August, post some legal clearances. IDFC Private Equity will reportedly invest in Quippos's plans.
Earlier in January this year, Tata Teleservices had sold a 49-per cent stake in its telecom tower business, Wireless Tata Telecom Infrastructure, to Quippo in a deal worth around Rs2,400 crore. (See: Tata Tele merges tower arm with Quippo in a Rs2,400 deal; plans GSM launch)