Hyderabad News

Lanco Infra shares tank 20% on RBI’s direction to start insolvency

Lanco Infra shares tank 20% on RBI’s direction to start insolvency

HYDERABAD: Shares of Lanco Infratech Monday slumped 20% after the Reserve Bank (RBI) directed its lead lender IDBI Bank to initiate insolvency proceedings for the company under the Insolvency and Bankruptcy Code (IBC).

The stock plummeted 20% 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% to end at Rs1.90, 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.

“The amounts mentioned in above referred letter shall be read as Rs 8,146 crore for fund-based outstanding exposure and Rs 3,221 crore for non-fund based outstanding exposure as on March 31, 2016,” Lanco Infra further said.