IL&FS plans to revive Maytas Infra

Hyderabad
Sept. 1: Mumbai-based IL&FS Ltd, the new promoter of Maytas Infra, hopes to revive the cash-crunched Hyderabad infrastructure firm in one year.
“The company (Maytas) is still moving through a very difficult period and probably it may take a year if not more to restore stability in its operations,” the IL&FS chairman, Mr Ravi Parthasarathy, said. He said they have to overnight pumped in Rs 50 crore to kickstart operations.
The four nominees of IL&FS, who would join the Maytas board, are Mr Parthasarathy, CEO and MD, Mr Hari Sankaran, the deputy MD, Mr Arun Saha, and transportation networks president, Mr Karunakaran Ramchand.
IL&FS, which was authorised by the Company Law Board to take over Maytas Infra’s management, has acquired 88,89,500 shares (15.1 per cent) that were pledged by Maytas Infra as a guarantee against the Rs 100 crore loan taken by two Ramalinga Raju’s front companies Naryandari Greenfields Pvt Ltd and Harangi Agro Farms Pvt Ltd. At the current market price of Rs 118.4 a share, the purchased shareholding is worth Rs 105.25 crore.
With this transaction, IL&FS’s stake in Maytas has reached 29.6 per cent, triggering the open offer norms. Apart from acquiring the remaining 7.5 per cent pledged shares, IL&FS has to buy an additional 20 per cent of shares from the open market. “The procedure for an open offer would commence in the next 2-3 days,” he said.
He said capital infusion is the number one priority and they may opt for QIP in the next fiscal.