Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: empanelment :: TDS :: form 3cd :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: due date for vat payment :: ACCOUNTING STANDARD
 
 
« News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

Maytas may take a year to stabilise: IL&FS
September, 02nd 2009

It will take about a year for tottering Maytas Infra to become financially stable, its new owner said, after which global financial firms will be offered stakes in the company. The company has seen a net worth erosion of Rs 490 crore last fiscal.

We will look at raising fresh capital through private placement of shares a few quarters after the company achieves financial stability and take it to the next level of expertise, Infrastructure Leasing & Financial Services (IL&FS) chairman Ravi Parthasarathy said on Tuesday.

IL&FS, the largest shareholder in the Hyderabad-based firm, was handed control of Maytas Infra on Monday, six months after a board dominated by government nominees made little progress in stabilising a company whose reputation was badly damaged by the Satyam financial scandal.

Maytas Infra did not receive any incremental credit from banks over the past seven months. The collateral damage from the Satyam episode has impacted its operations. The company has been billed for milestones, but these have not been reflected in the receivables as clients were unsure of the firms fate, Mr Parthasarathy said, adding that a planned Rs 1,600-crore debt restructuring package will be essential for the company.

Maytas Infra was run by Teja Raju, the eldest son of Satyam founder B Ramalinga Raju, when the financial scam at the software company came to light in January. The previous month, Satyam failed in its attempt to buy Maytas Infra and Maytas Properties, a real estate company run by the younger son of Mr Ramalinga Raju. Since March, major decisions were being taken by four directors appointed by the government.

IL&FS will make an open offer to raise its stake from 37% to 57% and expects to spend around Rs 130 crore if all investors tender their shares. The open-offer will commence in a day or two. Maytas Infra, whose share price rose by nearly 5% to Rs 118.40 on the BSE on Tuesday, has a market value of around Rs 700 crore.

The recast Maytas Infra board will have six members, including two government-nominated directors. Hari Shankaran (managing director, IL&FS), Arun K Saha (Jt MD), Karunakaran Ramchand (president and CEO, transportation networks) will be the new members on the Maytas board, to be chaired by Mr Parthasarathy.

IL&FS controls 37% of Maytas Infra, including the 22.6% stake pledged with it by the founding Raju family. The cost of buying a 57% stake could be around Rs 330 crore, including some Rs 200 crore for the 37% stake. IL&FS has been told by the Company Law Board that it must own at least a 26% stake in Maytas Infra for two years.

We have just entered Maytas Infra and have no plans of exit, he said Maytas Infra will get Rs 55 crore in emergency cash from its new owner to revive its operations. and the new owner aims to bring down its debt.

IL&FS hopes to bolster the order book and revive relationships with joint venture partners in build-operate-and-transfer (BOT) projects. Maytas Infra was forced to divest equity in a clutch of road projects to stay afloat. K Ramalingam, who was the government-nominated chairman, justified the divestments saying they were business decisions.

The original promoters own a 23% stake in Maytas Infra, while financial institutions and other public shareholders hold 40%, said Ved Jain, a government-nominated director.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions