Shareholders of Hyderabad-based infrastructure company Maytas Infra Ltd have approved the change of name of the company to IL&FS Engineering and Construction Company Ltd, expressing their views through a postal ballot.
This, in effect, completes the process of bringing about a new brand image for the scam-hit company, which went into a phase of business uncertainty in 2009, later to be rescued under the management of IL&FS, which now has a controlling stake in the company.
The Chief Executive Officer of Maytas Infra, Mr Vimal Kaushik, told Business Line that “this is a great relief for us as the stigma associated with the Satyam scam is off us now with the new name. We also have two strong promoters, IL&FS and the Saudi-based, SBG, which will ensure that the company has a better future ahead.”
He said, “Various issues including Master Restructure Agreement with banks have been concluded and we are looking at a much brighter year ahead both in the country and from orders abroad.”
After the Satyam Computer scam broke out in January 2009, the company, once rated as amongst the fastest growing infrastructure services companies, with projects including the Rs 11,136-crore Hyderabad Metro Rail Ltd, was adversely affected, losing clients and finding it difficult to execute orders due to cash crunch. Following a decision by the Company Law Board, the management of the company has changed with IL&FS garnering controlling stake in the company.
In 2010, IL&FS managed to induct Saudi BinLadin group, one of the leading infrastructure companies in West Asia, making it co-promoter of Maytas Infra. Through this association, IL&FS and SBG have set up a joint venture in West Asia and have been assured orders in Saudi Arabia, which they plan to execute together.
Maytas, which now has an order book of over Rs 8,000 crore, recently bagged a Rs 1,100-crore road project along with Hyderabad-based Gayatri Projects.
Maytas scrip ended the day at Rs 185.35 against previous close of Rs 182.45. Source: Hindu BusinessLine
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