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Maytas Infra gains in falling market

August 31, 2009

The BSE Sensex ended 1.6 percent down on Monday but shares in Maytas Infra ended nearly 5 percent higher at 112.80 rupees after the company’s board received a proposal to replace the existing founder of the firm.

The CLB has instructed Maytas’ board to induct ILFS as new promoters and allow them to assume management control through appointment of four directors, including the chairman.

IL&FS, which owns 14.5 percent stake in Maytas, intends to buy additional stake of 22.51 percent with an investment of 1.5 billion rupees.mail1

Results:

Late on Saturday, Maytas posted a net loss of 4.9 billion rupees ($101 million) for the financial year 2008/09. The company’s turnover too saw a dip, falling almost 18 percent from 16.37 billion rupees a year ago to 13.35 billion in 2008/09.

Shares in Maytas have fallen nearly 31 percent since January 2009, while from April the stock has witnessed a return of almost 223 percent, data from Thomson Reuters shows.

Do you think IL&FS’ acquisition in Maytas has made the latter a good buy?

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