Quippo-WTTIL plans IPO

The timing of the public offering is slated for fiscal end.

Telecom tower major Quippo-WTTIL is expected to hit the capital markets by the last quarter of the current fiscal.

“The company is already registering cash surplus and if it makes net profit in the next two quarters,it will hit the capital markets with an initial public offer,” people in knowledge of the development said.

Quippo-WTTIL is owned by Quippo and the infrastructure arm of Tata Tele,Wireless Tata Telecom Infrastructure (WTTL).

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“The rental income of the company is 2.3 times,which is higher compared to its peers,will boost revenue and profitability,thus,making a valuation of Rs 52 lakh for each tower attractive,” the sources said.

When asked about the quantum of dilution or fresh issue of shares in the proposed public offer,the sources said this matter will be finalised at a later stage after discussion with both the promoters — the Tatas and Srei Group.

Srei Group through Quippo Telecom,GIC Singapore (owned by the Singapore government),IDFC Private Equity and Oman Investment Fund as a block jointly hold 46 per cent in the joint venture telecom tower company Quippo-WTTIL.

Quippo-WTTIL had recently bought out Tata Teleservices Maharashtra for Rs 1,318 crore,valuing each tower at Rs 52 lakh. The company has 2,535 towers spanning Mumbai,Maharashtra and Goa.

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Quippo Telecom is also in the process of being merged with Srei Infrastructure Finance (Srei),the parent firm and post-merger,Srei’s holding in the tower JV will be around 11 per cent from nearly 2 per cent now.

Quippo-WTTL now boasts of a portfolio of about 38,000 towers and the company is looking at increasing this to about 60,000 over the next three years,according to Quippo managing director Sunil Kanoria.