Infrastructure Leasing and Financial Services Ltd (IL&FS), a leading infrastructure development and finance company, will be the new promoter of Maytas Infra, union Minister for Corporate Affairs Salman Khurshid, announced on Monday. "IL&FS will be the new promoter of Maytas Infra following an order of the CLB (Company Law Board)," Khurshid told reporters.
IL&FS will increase its holding in Maytas to 37.1% from 14.5% by invoking a 22.6% stake pledged with it by the firm’s promoters. It will offer to buy another 20% from shareholders, as per Indian law, and inject Rs 55 crore into Maytas within three months, CLB said.
Khurshid reportedly said an open offer — which is mandatory whenever a company intends to buy more than 15% stake in another company as per SEBI guidelines — would follow for investors. There would be a 26% lock-in binding for two years for IL&FS, the minister said. “In three months, IL&FS would bring in Rs 55 crore as liquidity in Maytas,” Khurshid said.
IL&FS would retain the management of Maytas Infra for at least two years.
IL&FS has been permitted to appoint four directors including the chairman, said the Company Law Board (CLB) order passed earlier in the day. Following the appointment of the new directors, Teja Raju, son of Satyam Computer Services' tainted-founder B Ramalinga Raju and Maytas promoter-director hitherto, will quit the board along with another director B Narasimha Rao.