End of Raju legacy at Maytas?

Hyderabad, Dec. 15: “They would ne-ver join Satyam. They have more interesting business to look after,” Satyam fou-nder Ramalinga Raju had once said to indicate the pr-eference of his sons for Maytas Infra and Maytas Properties. Ironically after little less than a year, the Raju family was forced to push the eject button at Maytas Infra. The new pilot, IL&FS has taken over control and has begun erasing the Raju legacy from the company. Even the name of Maytas Infra is soon to be changed, perhaps, to IL&FS Constructions.

Maytas Infra’s stock value took a dip following the Satyam Computers decisi-on to take over Maytas Infra on December 16. The stock price fell from Rs 480.30 on December 16 to Rs 31.40 on March 9, 2009, making the company lose around Rs 2,600 crore market capitalisation. Though the stock pr-ice recovered after the Ce-ntre-appointed directors to-ok over Maytas. IL&FS wa-nts to raise the market capitalisation to Rs 5,000 crore from the current Rs 890 crore. As part of “Plan 2012” to revive the firm, the new management is planni-ng to boost the firm’s order book, incentivise employees, reduce overheads and integrate its systems with IL&FS by December 31.

Currently, Maytas Infra has Rs 7,209 crore order bo-ok after it lost several projects, including the Hydera-bad Metro Project and the Machilipatnam Port Project. The company will get projects worth Rs 2,000 crore from IL&FS.

Maytas will earmark 10 per cent of its paid up capital for ESOPs and focus on skill upgradation of employees.

Sources said that the Raju family might sell off rest 20 per cent stake in Maytas Infra once the equity lock-in period is over in October 2010, drawing curtains to the Raju’s infra ambitions.