IL&FS Appoints Directors On Maytas Board

IL&FS Appoints Directors On Maytas Board

By TEAM VCC

  • 30 Sep 2009

Infrastructure Leasing and Financial Services Ltd (IL&FS) has formally taken over the as the new promoter of troubled Maytas Infra Ltd with appointment of nominees on the company board. This comes after the government announced IL&FS as the promoter of Maytas after the Company Law Board ruled in its favour on August 31. The four nominee directors from IL&FS replacing the government appointed directors are Ravi Parthasarathy (IL&FS chairman), Hari Sankaran, Arun Saha and K Ramchand, a company release said. 

IL&FS already had a 14.5% stake in Maytas, and after the CLB ruling it invoked the 22.6% stake pledged with it by Maytas promoters. This increased its stake in the firm to 37%, and the infrastructure major has also made an open offer for another 11,782,620 equity shares, constituting 20% of the paid-up capital of  Maytas Infra at Rs 112.50 per share, which was filed with Sebi on September 15, according to the release.

"This team would be supported by a well-balanced management with well diversified skill-sets in engineering, contracting, infrastructure, business development and financial administration and controls," the release added. The board has also approved an ESOP plan for the management team and employees of Maytas. 

IL&FS plans to infuse more liquidity into the company in order to kick start operations and may also go for a QIP/ private placement in the future. It also plans to revive the BOT projects of Maytas, and will bid with the firm for infrastructure projects where feasible.