Hyderabad: Infrastructure firms Gayatri Projects Ltd and Nagarjuna Construction Co. Ltd are jointly buying cash-strapped Maytas Infra Ltd’s 30% stake in Western UP Tollway Ltd, which is executing the Rs534 crore Meerut-Muzaffarnagar road project in Uttar Pradesh.
Maytas Infra is headed by B. Teja Raju, the eldest son of B. Ramalinga Raju, the jailed founder of Satyam Computer Services Ltd.
The infrastructure firm has been struggling to stay afloat after the Rs7,136 crore fraud at the software services firm was disclosed in January.
“Maytas Infra was finding it difficult to execute some of the projects that were awarded to it, including those in consortium, and we are picking up their stake in western UP project,” Gayatri Projects’ managing director T.V. Sandeep Reddy told reporters on Wednesday.
Gayatri will invest Rs25 crore for a 9% stake in the special purpose vehicle, increasing its holding to 49% from 40%, said Reddy.
Nagarjuna Construction will enhance its holding to a majority stake of 51% from the existing 30% for an undisclosed sum.
Maytas Infra has also divested its stake in two other road works it was executing in two separate equal joint ventures with Gayatri Projects. One is a 13km outer ring road project in Hyderabad worth Rs430.96 crore, and the other a 22.7km outer ring road worth Rs501.75 crore, said Reddy.
“We have the first right of refusal to acquire the stake in these two projects. As we did not show interest to buy out their stake, they have sold some 36% each in these two road projects in favour of Terra Projects (Pvt. Ltd),” he said.