Shares of Lanco Infratech today plummeted nearly 10 per cent, extending its previous sessions' decline, 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 tumbled 9.57 per cent to end at Rs 1.70 -- its lowest trading permissible limit for the day and also its 52- week low -- on BSE.
On NSE, shares of the company dived 7.89 per cent to close at Rs 1.75.
On the volume front, 33.17 lakh shares of the company were traded on BSE and over 48 lakh shares changed hands on NSE during the day.
IDBI Bank's scrip also fell by 2.01 per cent to close at Rs 55.95.
Shares of Lanco Infratech had slumped 20 per cent in the previous session also.
"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.
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