Maytas Infra, the Raju family-promoted company, is looking to divest stake for servicing its debt and funding its ongoing projects.
Maytas Infra, the Raju family-promoted company, is looking to divest stake for servicing its debt and funding its ongoing projects.
As the company is facing financial crunch, it may hive off its road projects and also bring in equity in the company itself, a Maytas Infra official said.
Maytas promoters hold about 85% of the company; however, the pledged shares of that holding could not be ascertained immediately.
Maytas has an orderbook of around Rs 8,500 crore with projects in sectors like power, oil and gas, roads and building contracts. The Hyderabad-based infrastructure firm is being investigated by corporate affairs ministry’s Serious Fraud Investigation Office (SFIO) for its alleged involvement with the scandal-hit Satyam.
“We are evaluating each and every project; we are working out the numbers on how much funds are required to complete these projects. For the metro project, it would be around Rs 13,000-15,000 crore, but all details on that need to be confirmed,” Maytas chairman K Ramalingam said at a press conference.
Maytas has outstanding debt of about Rs 1,700 crore. The company, however, did not provide details on its cash reserves. “We expect Rs 400-500 crore payments to come in soon from our customers,” Ramalingam said.
The official said that financial closure for the Hyderabad Metro project is expected to be completed in the next two months. Meanwhile, some of Maytas clients have cancelled their contracts, shrinking its order book by over 25% as the feasibility of completion of projects have been marred due to non-availability of funds.
“The order book has shrunk because some of the orders from the private sector in real estate got cancelled, and also because of the liquidity crunch and overall slowdown. But the important thing is that contracts from Powergrid Corp, Maharashtra State Electricity Development Corp and Gujarat Government etc are still very strong and we keep on interacting with them,” Anil Agarwal, Maytas board member, said.
Maytas is looking at corporate debt restructuring, through which it aims to raise new loans. However, the company officials did not divulge details on the developments adding that whole process would take “at least two weeks”. The company may also appoint SBI Capital markets to overlook the debt restructuring process. Maytas owes Rs 400 crore to ICICI Bank and about Rs 200 crore to SBI, and is talking to its 17 lenders for the restructuring process.
The company has about 1,800 employees on its payrolls and about 200 have quit the firm in the last 4 months.
The process of restatement of its balance sheet would be completed in a month.
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