Gammon India, Lanco Infra locked at 20% upper circuit

Gammon India and Lanco Infratech were up 20% each at Rs 15.49 and Rs 6.39 on the BSE respectively.

Shares of Gammon India and Lanco Infratech have locked in upper circuit of 20% each on the Bombay Stock Exchange (BSE) with no sellers on the counters.

Gammon India has frozen maximum higher limit of the day, up 20% at Rs 15.49 on the BSE after lenders have decided to take over the management control of infrastructure developer under the strategic debt recast scheme.

“The Corporate Debt Restructuring Empowered Group-(CDR EG) in its meeting held on November 23, 2015 has discussed and noted the invocation of strategic debt restructuring (SDR) in the company by the CDR Lenders, pursuant to Reserve Bank of India (RBI) circular dated June 08, 2015,” Gammon India said in a regulatory filing.

The trading volumes on the counter surged more than 10-fold with a combined 4.5 million shares changed hands on the BSE and NSE. There were pending buy orders for 536,192 shares on both the exchanges.

Lanco Infratech too soared 20% at Rs 6.39 after the company said it earned consolidated net profit of Rs 98.98 crore for the quarter ended September 2015, after a gap of three years, driven by strong operational performance and favourable power tariff order. The electric utilities company had posted a net loss of Rs 528 crore in the same quarter last year.

The company said Kondapalli unit I has received a favourable order from Supreme Court directing AP utilities for MAT reimbursement of Rs 175 crore plus interest towards tax component forming part of tariff for the period FY 2001 to FY 2012. After the court order, it has recognised this amount as revenue during the quarter.

“The company’s EPC order book, including power and solar projects, stood at Rs 27,722 crore. The financial closure of the cost overrun proposals of these projects will enable the execution of majority of this order book within the next three years,” Lanco Infratech said in a press release.

Till 11:46 AM, a combined 7.94 million shares changed hands and there were pending buy orders for 12.41 million shares on the BSE and NSE.