Megha Engineering and Infrastructure Ltd (Meil), the second biggest electoral bond donor, has an unusual debt profile.
The little-known infrastructure company has an outstanding debt of Rs 11,422 crore, or approximately $1.37 billion. This isn't a startling number for an infrastructure company, but what stands out in Meil's case is that 98% of the outstanding debt was added in just five months of 2023. Between July and December 2023, the company went on a debt binge raising a neat sum of Rs 11,252 crore.
Prior to that, Meil's debt barely exceeded Rs 1,000 crore in any given year over the past 18 years with just one exception. It was in 2013 that its debt stood at a princely sum of Rs 8,721 crore, which it duly paid off in 2020.
Though the company has projects worth an enviable Rs 1.87 lakh crore spread across 20 states and two union territories, as per Crisil Research, it maintained a rather low profile. However, the closely held public company came under the national spotlight soon after the Election Commission of India published details of the buyers and beneficiaries of electoral bonds.
According to India Ratings, its FY24 revenue is estimated at Rs 35,000 crore. This translates to a 10% increase over FY23, when revenue stood at Rs 31,766 crore.
According to data from the Election Commission of India, Meil purchased Rs 980 crores worth electoral bonds between April 2019 and November 2023, while its subsidiaries and associate companies, namely Western UP Power Transmission Company Limited, SEPC Power and Evey Trans Private Ltd, together bought another Rs 266 crore worth bonds.
Founded in 1989 by P Pitchi Reddy, a first-generation entrepreneur, Meil's journey took a dramatic turn in the last decade when it began bagging projects from everywhere.
Some of the high-profile projects include the Kaleshwaram Lift Irrigation Scheme in Telangana, which is under the Comptroller and Auditor General scanner. It is also executing the controversial Polavaram Multipurpose Irrigation Project in Andhra Pradesh, which was originally granted to Navayuga Engineering, but was subsequently cancelled.
Beyond infrastructure, Meil has interests in media entities. Through its subsidiary My Home Group, it has investments in regional new channel TV9.
The flamboyant Reddy is known within his circle for his love for movies, fast cars and luxury sports. In fact, in 2022, he brought in single seater motor racing event to Hyderabad with his entity India Racing League, and is now being expanded to other cities like Chennai.
If Reddy's Hyderabad home 'Diamond House' stands out for its architectural marvel, his family home in Dokiparru, Krishna district is no less a palace.
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