Government-backed IL&FS signalled on Tuesday that it plans to raise capital for beleagured Maytas Infrastructure a day after it took charge of the family affiliate of fraud-mauled Satyam Computer Services.
Maytas, in the thick of accusations that it benefited from deposed Chairman Ramalinga Raju’s wrongdoings in Satyam, has seen an erosion of net worth in the last few months.
Qualified institutional placement (QIP) could be an option for recapitalisation, after which IL&FS and Maytas could go for joint bidding in construction projects.
“Over the last 10 months, the company has suffered an erosion in net worth of a very significant amount, something like Rs 490 crore for the year ended March 31,” Ravi Parthasarathy, chairman, IL&FS told reporters in Hyderabad.
Parthasarthy said it would take at least a year to restore stability in the cash-strapped company. IL&FS, which currently holds 37 per cent in Maytas, plans to complete modalities to acquire another 20 per cent under regulatory rules within three weeks, he said.
Parthasarthy said that no fraud has been committed at Maytas itself and said it had only suffered “collateral damage” linked to the falsification of accounts in Satyam.