Maytas Infra open to stake sale

6 May 2009

NEW DELHI: Maytas Infra, promoted by the sons of Satyam Computer's disgraced founder Ramalinga Raju, is open to stake or asset sale to raise funds, required to implement on-going projects. However, the company is not interested for a strategic partner in the company.

Chairman of the company K Ramalingam said that at present the management is focusing on a revival plan and collecting dues from its customers. However, he did not rule out stake sale in future, without bringing in a strategic partner. Company's promoter, Ramalinga Raju owns around 85% stake in the company.

"The company is currently working out a revival plan and has already appointed SBI Capital Market for corporate debt restructuring (CDR)," he said. The board has also restructured the management of the company by appointing two presidents C S Bansal and Rajendra Nimje, who will spearhead the company. It is learnt that after assessing their performance, one of them will soon be appointed as CEO of the company.

As for the current position of the company, the chairman said it has a healthy order book worth over Rs 8,500 crore, excluding the Rs 15,000-crore Hyderabad Metro rail project. "Financial closures for all the Rs 8,500-crore projects have already taken place and they are expected to be completed in the next 24 months," government-appointed director Ved Jain said.

Jain added that existing funds are sufficient to carry out the projects. Of the Rs 8,500-crore projects, Rs 5,000 crore are for irrigation projects, which are not on built-operate-transfer basis.

Regarding the Hyderabad Metro rail project, Jain said, "There are certain issues regarding the acquisition of land, and that Maytas Infra has moved an application to the Andhra Pradesh government asking for extension for financial closure of the project." The company was originally scheduled to complete financial closure by mid-March.

For arranging funds for the Metro rail project, Jain added that the board will take up the issue in the next meeting, likely to take place next week.

When asked about the presentation of accounts for the year ending 2008-09, Jain said, "It will take some time as the investigating agencies are still doing their work. Once the probe is complete, the company will be able to give true picture of the company." He also added that the new account is not required for the CDR as banks are aware of the various issues the company is facing.

On the exact position of employees in the company, Ramalingam said at present there are 1,800 employees and though a few employees left the organisation post-Satyam scam, many of them are willing to come back, which is a good sign.

On the revival plan, the chairman said the company has an outstanding debt of approximately Rs 1,700 crore and an order book of more than Rs 8,500 crore, apart from the Hyderabad Metro rail project, worth Rs 15,000 crore. He said at present the company has a receivable of Rs 500 crore. The company has not paid salary to its staff for last three months. Ramalingam said that the company will soon start paying the salary.