Lanco Infra becomes penny stock

Lanco Infra has become a penny stock. The stock is today down at Rs.5.02, down over 3%, very close to its 52-week low of Rs.4.96. Its market cap stands at Rs.1208 crore.

The stock is down on news that banks have told infrastructure group Lanco that all its group companies must opt for loan recast if they have to bail out the holding company Lanco Infratech. Lenders want Lanco to recast the entire group debt, which stands at Rs 40,000 crore, rather than adopting a piecemeal approach of restructuring the debt of one subsidiary at a time. Lanco Infra had recently sought an additional loan of Rs.5700 crore of which Rs.745 crore was for finance its interest burden. Lenders have told Lanco Infar that this loan amount is too high and asked the company to review this.