SBG Projects Investments Ltd — part of the Saudi Binladin Group, a construction company in West Asia — has increased its stake in IL&FS Engineering and Construction Company Ltd (IECC) from 19.98 per cent to 32.39 per cent, following a recent open offer.
While IL&FS has retained the stake of 17.12 per cent in the scam-hit Hyderabad-based infrastructure company (formerly Maytas Infra Ltd) , its financial services arm, IL&FS Financial Services Limited (IFIN), has increased its take from 11.03 per cent to 17.45 per cent, thereby acquiring 6.41 per cent more.
SBG launched the open offer for picking up an additional 20 per cent stake through Skylight Investments Mauritius Ltd. IL&FS, IFIN and SBG are persons acting in concert. IL&FS and IFIN together now have 34.57 per cent stake in the company, according to latest disclosures made to the stock exchanges.
So, SBG (12.41 per cent) and IFIN (6.41 per cent) have together acquired 18.82 per cent more in the company. SBG, and IL&FS and its group companies now own 65.43 per cent of the equity of IECC.
The offer size was expected to be Rs 323 crore, including Rs 195.72 for a share of Rs 10 and interest Rs 12.34. However, together they invested Rs 302 crore for the additional stake.
Following an order by the Company Law Board in 2009, IL&FS had acquired Maytas Infra. The order had come after the company was hit by a mega-financial fraud, along with other companies that were promoted by the founder-chairman of Satyam Computer Services Ltd (now Mahindra Satyam), Mr B. Ramalinga Raju, and his family members.
IECC is now on recovery path under the new management. The company's shares closed on Monday at Rs 178.20, down 10 paise from its previous close.