Shares of Maytas Infrastructure fell on Monday after the price of open offer — to be made jointly by IL&FS and Binladin Group — came out below expectations.
The offer price has been fixed at Rs 195.7 — a discount of over 7 per cent to Friday’s closing price. The stock price of Maytas was down 3 per cent and closed at Rs 204.5.
On Saturday, the Binladin group had acquired a 20 per cent equity stake in Maytas via a preferential allotment. The transaction has brought in around Rs 300 crore on the Maytas balance sheet.
T
he troubled construction contractor wouldn’t need any additional funding for the time being, said a highly placed source.
The Binladin group is now a co-promoter of the company with a 20 per cent stake. Following the equity infusion, the share of IL&FS has dropped to 28 per cent — with 2.18 crore shares in hand.
IL&FS doesn’t intend selling any shares in Maytas at this point.
The financial institution is expected to retain a say in the day-to-day management of the construction firm.
IL&FS had been brought in as the promoter of Maytas in November 2009 in place of the family of Mr Ramalinga Raju.
It was the largest shareholder in Maytas with 37 per cent of the equity. Under terms of the agreement, IL&FS had to maintain a minimum stake of 26 per cent in Maytas for two years. After the induction of Binladin, the Raju family will come down to around 19 per cent.
The Binladin Group, the leading construction firm in Saudi Arabia, may use Maytas to implement civil projects in its home market.