Swedfund International AB, a financial organization owned by the Swedish government, acquired a 17.24 percent stake in Indian Infrastructure Equipment Ltd., known by the brand name Quipo, India’s largest equipment rental company.
Swedfund is the third international financial institution to acquire equity in IIEL. World Bank member company International Finance Corp. and FMO, a financial institution owned by the government of the Netherlands combine with Swedfund for a 57 percent stake in IIEL. Srei Infrastructure Finance Ltd., an Indian infrastructure equipment and projects financing organization holds a 25 percent equity capital stake in IIEL, and equipment manufacturer Ingersoll-Rand owns an additional 2.6 percent.
“The enhanced equity investment will help in strengthening the company in offering a wider range of services to its customers in the infrastructure sector,” said Sunil Kanoria, chairman and managing director of IIEL.
Quipo has seven branches in India, specializing in earthmoving equipment rental.
“We believe Quipo has a well-defined business concept in the equipment service provider sector,” said Arne Georgzen, senior investment officer for Swedfund International AB. “Quipo creates an evident customer value with the rental service concept for infrastructure equipment. This will enable a sustainable growth both for Quipo and for the business area in general and contribute to the economic growth of India.”
