Axious Investments, a Singapore-based fund, is picking up a 3.8% stake in SREI Group-promoted Quippo Telecom Infrastructure Ltd (QTIL) from an existing shareholder. The deal has been struck at Rs 200 crore, reports Economic Times, valuing the company at more than Rs 5,200 crore. Axious is buying the entire 3.8% stake held by a Delhi-based Premier Chemco Pvt Ltd.

The deal comes on the backdrop of merger between Wireless Tata Telecom Infrastructure Ltd (WTTIL), the hived-off telecom tower arm of Tata Telecom, and QTIL. The merger involves Quippo picking up a 49% stake in WTTIL for Rs 2,400 crore and transferring its tower to the company. Quippo has the management control of the combined entity. The merged entity is expected to have 18,000 towers and an enterprise valuation of about Rs 13,000 crore.

Quippo has raised several rounds of private equity funding from investors which include investment firm DB Zwirn, sovereign wealth funds Singapore’s GIC and Qatar’s Oman Investment Fund (OIF), IDFC Private Equity, etc.

QTIL's valuation has risen dramatically over the last two years and its looks like a very promising exit to its PE investors in the future. When its raised funds from Singapore's GIC and IDFC Private Equity in early 2007, the two funds picked up 25% for $50 million, valuing the firm at $200 million (~ Rs 1,000 crore). Then when it raised funds from OIF, DB Zwirn and other investors in August last year, the valuation was approximately Rs 3,000 crore, as per media reports.

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