The Hindu Business Line : We’re well capitalised: Maytas Infra CFO

Hyderabad, Dec. 17 “We are well capitalised and there is no fund crunch. All projects currently being executed are under control,” according to the Chief Financial Officer of Maytas Infra, Mr V.V.R. Raju.

Interacting with Business Line, Mr Raju said that the news of Satyam Computer bid to acquire Maytas Infra (subsequently withdrawn owing to investor reaction) had come as a surprise.

“There was no indication before. We learnt last evening. The entire transaction stemmed from a decision that Satyam took with the promoter shareholders of Maytas Infra. We are not privy to this transaction and Maytas Infra is not a party to this development and is not involved,” he said.

After a successful IPO, Maytas has enough funds. Most of the infrastructure projects are executed with working capital, he added.

Mr Raju said “in the $3.2-billion Hyderabad metro rail project, Maytas has 26 per cent stake. Over a five-year period when the project is executed, Maytas would have to contribute Rs 1,200 crore. We are confident of doing so through the special purpose vehicle. We will tap market when required.”

Asked whether the deal was to bail out the infrastructure companies from the cash crunch, Mr Srinivas Vadlamani, Chief Financial Officer of Satyam Computer, said “it was absolutely not true.”

Hyderabad Metro

However, Mr Shailesh Kanani, a research analyst with Angel Broking, felt that the reason for Maytas Infra to sell majority stake could be its equity commitment to the Hyderabad metro rail project. “They need to go for dilution of equity in order to meet the commitment,” he pointed out.

“It’s (Maytas Infra) quite expensive when compared with its peers. It will be a difficult task for them now that the deal fell off,” he said.

However, a top executive of Hyderabad Metro Rail felt that the developments would not have any impact on the project.

“As of now, every thing is going well according to schedule. We hope that raising funds could not be a problem for the Maytas-led consortium,” he said, when asked whether the project would get impacted.

Related Stories:
Satyam to buy Maytas Infra, Maytas Properties for $1.6 b

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