Maytas Infra may sell stake in projects

Hyderabad: Maytas Infra, the troubled infrastructure company run by Satyam’s disgraced founder B Ramalinga Raju’s son, is in talks with two Hyderabad firms for a potential sale of projects worth thousands of crores awarded to it, people close to the development said.
Teja Raju-led Maytas Infra is in discussions to sell its interests in the projects to privately-held Ramky Infrastructure and Nagarjuna Construction Company, as a cloud of uncertainty hangs over its ability to raise funds following the revelation of the financial fraud at Satyam.
Maytas Infra, which has orders worth over Rs 13,000 crore, needs an estimated Rs 1,200-1,300 crore in working capital for its ongoing projects.
Unlisted Ramky, which posted revenues of Rs 1,600 crore in FY08, is scrutinising the assets and liabilities of Maytas Infra and will decide on a strategy to provide financial, operational and managerial assistance within 15 days, he said.
Maytas Infra is also talking to Nagarjuna Construction to sell stakes in projects in the hope that this would lighten the burden on its books, a source close to the development said. Nagarjuna Construction, however, denied any such move is in the offing.
Nagarjuna Construction, which is partnering Maytas for building the Machlipatnam port in Andhra Pradesh as well as the airports at Shimoga and Gulbarga in Karnataka, is reviewing the beleaguered company’s efforts to raise money. “We will review it project-by-project. If the company (Maytas Infra) is unable to raise money for the joint venture build-operate-transfer (BOT) projects, we will increase our stake and execute them. A call will be taken within the next three months,” said Nagarjuna Construction vice-president (finance) YD Murthy.
15/01/09 Trushna Udgirkar/Economic Times

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