Maytas Properties, the realty division of Maytas Infra, has decided to shut down its four arms including hospitality, warehousing, affordable housing and retirement communities.

It is also learnt that the above decision has also resulted in the company issuing “pink slips” to about 80% of the 500 strong staff even as Maytas Properties has ceased most of its projects.

The unlisted entity Maytas Properties, headed by Rama Raju Jr., the younger son of B. Ramalinga Raju, the former Chairman of Satyam Computer, has been pushed into a disaster, with reports of sacking and closing of new business verticals floated during the last year (2008) emerging during the last week.

The company had decided various projects, which included SEZs and big township projects, with huge investments.

In December 2008, the company saw the exit of three senior-level management executives and declared a cap on future growth.

In its hurry to become a big real estate player, the company bought land and was mulling over various projects in cities such as Visakhapatnam, Vijayawada, Bangalore, Chennai, Nagpur and Kochi.

The company also got into for private equity and lifted Rs 600 crore from Infinite India Investment Management by divesting minority stake during February 2008.

But, the economic slump in realty sector pushed the company into crisis. The December 16 Satyam board verdict to get hold of Maytas Properties, in retrospect, was a bailout.

Mr. K. Thiagarajan, CEO of Maytas Properties, informed the company’s board meet had not leveraged PE funds regardless of the massive land bank. The company also cleared up to members that land and developments were given as guarantees to bank.

The company’s CFO, Mr. V. Srinivas argued in the hot meeting that the company had a land bank of 6,800 acres and can build 245 million sq ft that is one-third of DLF’s properties.

It is understood that all projects excluding the Maytas Hill County residential project and Hill County SEZ are being wound up and these two projects might not come through as well.

Shares of Maytas Infra, on Friday (Jan 16) closed down Rs 6.15, or 4.99%, at Rs 117 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 408. Current EPS & P/E ratio stood at 17.84 and 6.56 respectively. The share price has seen a 52-week high of Rs 840 and a low of Rs 117 on BSE.