Lanco Infratech has rallied 7% to Rs 13.40 after the company said that Supreme Court of Western Australia has allowed the Griffin Coal Mining Company Pty Limited (GCMC), a subsidiary of company to enter into revised Coal Supply Agreement (CSA) with Griffin Power entities which is in process of being acquired by Japanese consortium of Sumitomo Corp and Kansai Electric Power Co.
“The revised CSA will result in a gain of approximately AUD 150 million (approx. Rs 850 crore) in NPV terms including a substantial upfront payment to GCMC,” said L Madhusudhan Rao, executive chairman, Lanco Infratech.
Lanco Resources Australia Pty Ltd, the step down subsidiary of Lanco Infratech, had acquired Griffin assets including Carpenter mine for $720 million. Last year Griffin produced over 3 million tonne of coal.
The stock opened at Rs 12.75 and hit a high of Rs 13.65 on the NSE. As many as a combined 22.92 million shares have already changed hands on the counter in morning deals against an average around 20 million shares that were traded daily in past two weeks on both the exchanges.