Maytas Infra up 5% on acquisition reports

MUMBAI: Maytas Infrastructure shares opened the day at the upper circuit of 5% on Friday, on reports that two Hyderabad-based investors have emerged as strong contenders for acquiring the company. The stock opened the day at Rs 59.90, higher by 5% from Thursday's close. A little over 33,000 shares were traded on BSE.

According to reports, Rithwik Projects and SEW Infrastructure are already believed to be doing the due diligence of Maytas Infra. Rithwik Projects has experience of building irrigation projects, roads, bridges and flyovers across Andhra Pradesh and other parts of the country. It is headed by CM Ramesh, the chairman and managing director. The other investor is believed to be one of the founders of SEW Infrastructure. At this stage, it is not known if the investment in Maytas will be made by SEW or by its founder.

A final decision is likely to be taken as early as next week. Infrastructure Leasing & Financial Services, the Mumbai-based lender, is helping investors in the process.

Interestingly, the promoter of one of the firms is believed to be close to a well-known Andhra Pradesh-based political party, and this is causing speculation over a backroom deal involving politicians.