Maytas Infra moves up despite seeking extra time for HMRL’s financial closure

Maytas Infra is currently trading at Rs 34.80, up by 0.85 points or 2.50% from its previous closing of Rs 33.95 on the BSE.

The scrip opened at Rs 34 and has touched a high of Rs 35.20 with a low of Rs 33.95.So far 38,446 shares were traded on the BSE.

The BSE group ‘B’ Mid-cap stock of face value Rs 10 has touched a 52 week high of Rs750 on April 2, 2008 and a 52 week low of Rs 31.40 on March 9, 2009.

The BSE Mid-cap index is currently trading at 2,768.25, up by 2.67% from its previous closing.

The scrip price has witnessed a positive change of 0.87% since last week and a correction of 38.35% since last month.

Maytas Infra, promoted by the family of beleaguered Satyam Computer Services founder B Ramalinga Raju, has sought additional time to achieve financial closure for the Rs 12,132-crore Hyderabad Metro Rail (HMRL) project. The consortium was to achieve financial closure for the high-profile project on Tuesday.

The company will now have to deposit Rs 240 crore bank guarantee and get a 60-day breather by paying a penalty for achieving the financial closure.

The 71.6-km long metro rail project is to be executed on a build, operate and transfer (BOT) basis in a public-private partnership with the government’s contribution mainly being land. The government had issued the letter of acceptance for the project in August last year. HMRL, a special purpose vehicle, was formed to implement the elevated metro rail project in four years.

According to Maytas Infra, the global recession and credit squeeze in national and global capital markets has created a force majeure (a common clause in contracts which essentially frees both parties from liability or obligation when faced with an extraordinary event) situation. This apart, an ongoing PIL (public interest litigation) has also impacted the company’s move to achieve the financial closure.