SREI Infra to integrate Quippo with self

January 29th, 2010 - 12:19 am ICT by IANS  

KPMG Kolkata, Jan 28 (IANS) Non-banking financial company Srei Infrastructure Finance Limited Thursday said it would integrate all the subsidiaries of Quippo group of companies under it.
“It will be a synergistic integration of all the subsidiaries that would help us in better operations in the future,” Hemant Kanoria, Chairman and Managing Director of the company said, at a press conference here.

He said the integration would help in creation of a fully integrated and holistic infrastructure institution bringing all infrastructure business under one umbrella - equipment financing, project financing, advisory, development and Quippo’s infrastructure business.

Quippo has five companies - Quippo Construction, Quippo Telecom, Quippo Oil & Gas, Quippo Energy and an Asset Valuation & Disposal company.

Srei would integrate all these under one umbrella to get higher networth to capitalise on future growth.

“We have a networth of Rs.750 crore at present, which is expected to be over Rs.2,000 crore after the integration,” he said.

At present, Srei has 30 percent promoters holding, which will go up to 46 percent after the integration. Quippo has 57 percent promoters’ holding now.

The appointed date of merger is April 1, 2010. Srei expects to complete the entire integration process by the second quarter of 2010-11 (April-March).

“Shareholders of Quippo will receive 3 shares of Srei for every 2 share held in Quippo,” he said.

Kanoria said the integration plan was underway for the last 4-5 months and consultants like Kotak Mahindra Capital Company Limited, ICICI Securities Limited, JM Financial Consultants Pvt Ltd, KPMG India Private Limited and Ernst & Young Pvt Ltd were engaged in the decision making.

The company posted a profit after tax of Rs.44.20 crore for third quarter (October-December) against a profit of Rs.8.77 crore during the corresponding period last fiscal (2008-09).

Total consolidated disbursement done by the company during the quarter this fiscal (2009-10) was Rs.2,000 crore as compared to Rs.295 crore done during same quarter last fiscal, registering an increase of 578 percent.

“Board has recommended a bonus issue of 4:5, that is, 4 shares for every 5 existing shares of Srei,” he said.

–Indo-Asian News service

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