Maytas Infra chairman K. Ramalingam (centre) with board members Anil K. Agarwal (left) and Ved Jain in New Delhi on Tuesday. Picture by Rajesh Kumar

New Delhi, May 5: Maytas Infra, hurt by the Satyam scam, is in talks with ICICI Bank and SBI Capital Markets to restructure its debts.

Hyderabad-based Maytas could also resort to a stake sale to tide itself over a liquidity crunch, a government-appointed member of the company’s board said today.

The company has debts of approximately Rs 1,700 crore and an order book of more than Rs 8,500 crore, apart from the Hyderabad metro rail project, which is worth Rs 15,000 crore. Maytas is promoted by the family of Satyam’s disgraced founder B. Ramalinga Raju.

“For debt restructuring, ICICI Bank and SBI Capital Markets are talking to 15 other banks as we have a good number of orders and are looking at new orders,” said chairman K. Ramalingam. Around 15 banks and financial institutions have an exposure of around Rs 5,000 crore.

Ramalingam said the firm had sought six more months from the Andhra Pradesh government to arrange finances for the Hyderabad metro project. The company was scheduled to reach financial closure for the project by mid-March.

“We see that the company is on a recovery path. Maytas Infra has written to the Andhra government for an extension (of the financial closure in the metro project),” Ramalingam said.

The new chairman did not rule out a stake sale to fund projects, though there was no pressing need for a strategic partner just now. Promoters at present own about 85 per cent in the firm.

Ramalingam said Maytas’ clients owe Rs 500 crore, and the company was urging them to pay advances for the projects under execution. This was necessary for the “revival of the firm which is facing a credibility crisis more than a financial crisis”.

As part of a revival strategy, Maytas has formed four committees in the areas of project management, audit, finance and law. “We have done draft plans for restructuring and have started meeting the customers to assure them,” Ramalingam said.

A big plus for the company is the willingness of some staff who had left after the Satyam scam to rejoin. Maytas now has 1,800 employees.

The Maytas scrip today rose Rs 1.95, or 4.99 per cent, to end at Rs 41.05 on the BSE.

Tech Mahindra

Satyam Computer today said its new owner Tech Mahindra had completed the process for acquiring a 31 per cent stake in the company.

In a filing to the BSE, Satyam said Tech Mahindra, via its subsidiary Venturbay Consultants, had been allotted 30,27,64,327 shares of the firm.