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Shares of Lanco Infratech on Monday slumped 20 per cent after the Reserve Bank directed its lead lender IDBI Bank to initiate insolvency proceedings for the company under the Insolvency and Bankruptcy Code (IBC).
The stock plummeted 20 per cent to close at Rs 1.88 — its lowest trading permissible limit for the day as also its 52-week low — on BSE.
At NSE, shares of the company tanked 19.14 per cent to end at Rs 1.90 — its lower circuit limit.
"Lanco Infratech Limited (LITL)...Vide letter dated June 17, 2017, intimated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that RBI directed IDBI Bank, the lead bank of LITL to initiate Corporate Insolvency Resolution Process (CIRP) for LITL under the Insolvency and Bankruptcy Code, 2016," the company said.
The company is among 12 firms identified by the central bank with a combined debt of over Rs 1,50,000 crore, a quarter of the total NPAs, for proceedings under the Insolvency and Bankruptcy Code.