Hyderabad-based construction company Gayatri Projects (GPL) has announced allotment of 1 million equity shares of Rs 10 each at Rs 185 per share to Reliance Mutual Fund belonging to the Anil Dhirubhai Ambani Group.

The Rs 18.50-crore raised through the preferential allotment of shares is aimed at generating long-term resources for implementing GPL's future growth plans.

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Established in 1963, GPL is currently executing projects worth Rs 6,000 crore, including Rs 3,000 crore worth of irrigation and Rs 1,000 crore national highway projects.

GPL has also taken up three projects in joint venture with Maytas Infra, a listed company run by the kin of fraud-hit Satyam Computer Services founder B Ramalinga Raju.

According to Reddy, GPL is taking over the 30 per cent stake of Maytas in the western Uttar Pradesh tollway project involving the construction of national highway between Meerut and Muzaffarnagar at a cost of Rs 534 crore. " We are taking over the liability of Maytas in the project, which is to the tune of about Rs 25 crore," he said.

Even in the remaining two projects -  Cyberabad Expressway and Hyderabad Expressway,  Reddy said Maytas had decided to hive off a part of its 50 per cent stake to Kolkata-based Terra Projects belonging to the Neco group.

Reddy said there had been no direct impact of the Satyam episode on the execution of the three projects though Maytas had been the joint venture partner. The projects would be implemented by March 2010, ahead of schedule, he added.

GPL, which posted a turnover of Rs 1,400 crore in 2008-09, is also  looking at development of thermal power projects. "In view of the government's renewed thrust on the infrastructure sector, there are vast openings for a leading company like Gayatri," Reddy said.

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