Lanco Infra drops on account of trading suspension

Large Indian conglomerate, Lanco Infra is set to face liquidation as it owes over Rs. 44,000 crore to the IDBI bank-led lenders consortium. The liquidation was ordered by the Hyderabad bench of National Company Law Tribunal (NCLT).

The BSE exchange will suspend trading in the infra stock from September 14, 2018, once the liquidation proceedings have been set in motion, as reported by a leading newspaper. As a result, the shares of Lanco Infratech slumped 4 per cent on Friday, hitting a low of Rs. 0.48 on the BSE. The suspension in trading is to avoid market complications.

IDBI bank is the lead lender of Lanco Infratech. In June 2017, the RBI directed IDBI bank to initiate insolvency proceedings against the company under the Insolvency and Bankruptcy Code (IBC).

There is also buzz in the market that Lanco Infra has been approached by a potential buyer who has proposed a revised resolution plan. The revised plan was submitted by an infra and mining firm called Thriveni Earthmovers on Tuesday. However, the creditors of Lanco Infratech had earlier rejected its resolution plan.

On Friday, the stock was trading at Rs. 0.48 on BSE, down by 0.02 per cent and at Rs. 0.45 on NSE, down by 0.05 per cent at 15:06 hours.