Srei Infrastructure Finance has decided to merge its its associate company Quippo Infrastructure Equipment with itself in order to bring both the companies? infrastructure business under one umbrella.
Accordingly the shareholders of Quippo, in which Srei holds 17% and the Kanoria family 58%, will receive three shares for every two shares held in Quippo, Hemant Kanoria, chairman and managing director of Srei Infrastructure Finance, said.
He said the promoter?s shareholding in Srei would also go up from 30% to 46% after the merger with the net worth of the combined entity reaching Rs 2,000 crore. Srei?s net worth as on March 2009 was Rs 750 crore, he added.
Quippo’s business activity involves construction equipment, energy, oil and gas equipment and telecom tower infrastructure rentals. The merger will be effective from April 1, 2010, Kanoria added.
With the merger, Quippo Infrastructure?s all five subsidiaries will come under Srei. Quippo Telecom Infrastructure Ltd (QTIL), which picked up 49% stake in Wireless Tata Telecom Infrastructure (WTTL), the Tata Teleservices? tower arm, will also come under Srei after the merger.
The Srei board has also decided to capitalise a part of its reserves and issue bonus shares at a ratio of 4:5 to the shareholders of Srei.
Srei Infrastructure has reported a net profit of Rs 44.20 crore for the third quarter of the current fiscal, against Rs 8.77 crore in the same period last fiscal.
Consolidated disbursement done by Srei during the quarter to December 31, 2009, was Rs 2,000 crore, against Rs 295 crore in the same period last fiscal.
Srei at the end of the third quarter of the fiscal has assets worth of Rs 12,161.45 crore under its control, compared with Rs 10, 024.90 crore worth of assets under its control during the corresponding period last fiscal.