Lanco Infra jumps up over 7%

With volumes surging around 2 times, Lanco Infra is on a roll today. The stock is currently up over 7% at Rs.6.28, very close to its intra day high at Rs.6.31. Its 52-week stands at Rs.14.94 and market cap is at Rs.1512 crore.

The stock is in the limelight today after the company announced yesterday late evening that its Board of Directors had passed a Circular Resolution wherein allotment of 5.45 crore equity shares was approved at a price of Rs.6.23/share. This issue of shares is as per the CDR agreement and will be allotted to ICICI Bank, which it its CDR creditor.

The consolidated debt of the group is around Rs.30,000 crore. As on 11th Dec’13, a consortium of 27 lenders headed by the IDBI Bank cleared Rs.7,000 crore CDR package to release Rs3,500 crore as working capital advance to enable it to resume engineering, procurement and constructions operations. Of this Rs2,500 crore were to be fund based