Mr Ved Jain Indian government nominated director of Maytas Infra said the order book position when the company was handed over to IL&FS was INR 7,500 crore and now "We expect to get an order of around INR 1,000 crore very soon. He added that "Investors had reposed their confidence in the company after IL&FS takeover, he said. IL&FS entry had resolved issues of Maytas' credibility, liquidity and executions, he added. Hill County project, is of top priority for Maytas Properties."
Here is a verbatim transcript of an exclusive interview with Mr Ved Jain on CNBC-TV18.
Q - Start off by updating us if you could on where the order book situation is for Maytas right now?
A - The order book position when we handed over this company to IL&FS was INR 7500 crore and as we see now the talks are going on and IL&FS is putting all their resources and we expect to get an order around more than INR 1,000 crore very soon on this project.
Q - Is it true that the Maytas Nagarjuna Construction consortium is likely to lose the Machilipatnam port project?
A - Machilipatnam port project we are not losing it because the Machilipatnam port trust there were conditions and we had the discussion with the new promoters. We find that it is not workable so that is why the Machilipatnam port trust is being given to the other partner to complete the project.
Q - Have you had any communication from Teja Raju since Maytas was handed to IL&FS and what is his course of action from here?
A: That is not required. We are the government director and now we are in charge of the Maytas Infra. Once Mr. Teja Raju has exit from the company we do not find that there is any need and a communication is required. That was one of the plan and that was the scheme that was executed. Now Teja is out going promoters so the new promoters are in. They are in charge of the company and they are taking over the company and working for the company.
Q - We believe that the board maybe looking at getting some additional capital in by way or raising funds via Maytas Properties as well is that on the agenda and how much money would you look to raise?
A - Let me first clarify on this issue of Maytas Infra also. After IL&FS has come in now the three issues of credibility, liquidity and executions have been resolved fully. IL&FS has got the credibility and they are talking to the customer, they are talking to the vendors, they are talking to the bankers and everybody has repose confidence. IL&FS walking in liquidity has improved a lot. The bankers have agreed to provide the funds and we expect good amount of funds walking in by next week. IL&FS has a good team for execution. The project has started executing and Maytas Infra has started bidding for the new projects and that way we believe that the company is back to the normal working. Coming time will be very good time for the Maytas Infra.
As regards Maytas Properties I have been saying repeatedly that Maytas Property is an asset rich company but liquidity is a big issue with Maytas Properties. We have been trying to work various ideas and various combinations how we can get out of it and how we can work it out. The top most agenda is completion of the Hill County Projects where 600 plus families have invested money. I have been trying to work. We have been talking to some of the promoters and one of the promoter has agreed to provide necessary fund for development of another project. The surplus arising from that project will be pumped in to the Maytas Hill County and I believe the moment that project takes off the Maytas Hill County problem will also be sorted out.
Q - How much money is it that Maytas Infra hopes to get from banks via loan in the first tranche and IL&FS had indicated that they are looking at a QIP as well is that on the cards?
A - The bank is likely to provide initially INR 100 crore within a week's time and already started flowing in. Regarding QIP the board did have a discussion on the QIP and we are working on this. QIP we can look into at an appropriate time but may not be in the immediate future but maybe at the appropriate time QIP will also be worked out.
Q - So would it be fair to say that you are only looking at recourse to debt or accessing more debt no equity capital even to any strategic investor etc at this point?
A - For Maytas Infra, IL&FS is the new promoter and 37% equity they are holding on as on date. An open offer for 20% is going to be open on October 24, so that way they will be holding 57%. As regard debt restructuring that plan is with the bankers, IL&FS is working on both to find out ways and means how the debt restructuring has to be done. I believe these decisions will be taken in the month or two months time how we have to work it out and that is why I told you that QIP plan is also the plan on the agenda but we need to work out the strategy which will be in the best interest and the financial module. Looking to the large debt which Maytas Infra has on date and the way we are going to get the orders in future.
Source - CNBC-TV18
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