Lanco Infratech slumps on media reports of non-renewal of loan

Lanco Infratech fell 3.17% to Rs 4.88 at 11:08 IST on BSE on reports that Yes Bank has decided not to renew its Rs 250 crore loan to the company.

Meanwhile, the BSE Sensex was up 10.77 points, or 0.04%, to 27,090.28.

On BSE, so far 4.33 lakh shares were traded in the counter, compared with an average volume of 12.04 lakh shares in the past one quarter.

The stock hit a high of Rs 5.14 and a low of Rs 4.70 so far during the day. The stock hit a 52-week high of Rs 8.07 on 5 November 2014. The stock hit a record low of Rs 2.46 on 25 August 2015.

The stock had outperformed the market over the past one month till 9 October 2015, rising 52.73% compared with 5.29% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.75% as against Sensex's 1.79% decline.

The small-cap company has an equity capital of Rs 274.93 crore. Face value per share is Re 1.

According to media reports, Yes Bank has decided not to renew its Rs 250 crore loan to the company and has invoked its powers to claim its right on the Rs 250 crore lying in the escrow account.

Reports suggeseted that Lanco Infratech has temporarily shelved its plans to sell assets. The decision may have disappointed lenders since this was one of the ways to trim Lanco's debt.

However, bankers led by ICICI Bank have asserted their right to convert their debt into equity through the strategic debt restructuring route in case of Lanco Teesta, a special purpose vehicle that generates power. Lenders have close to Rs 2400 crore exposure to the company, reports added.

On consolidated basis, Lanco Infratech reported net loss of Rs 300.36 crore in Q1 June 2015 compared to net loss of Rs 306.35 crore in Q1 June 2014. Total income fell 36% to Rs 1677.30 crore in Q1 June 2015 over Q1 June 2014.

Lanco Infratech is in the domains of engineering, procurement and construction (EPC), power, solar, natural resources and infrastructure.

Powered by Capital Market - Live News