Lanco Infra builds up

 Lanco Infratech is in the limelight today. The stock opened at Rs.10.59 and soon scaled up over 11% at Rs.12.39 and is currently at Rs.11.45, up 9%. Volumes are huge at almost 37 lakh shares.

The stock is in the green today after the company announced that its subsidiary in Australia, Griffin Coal, has settled the long legal battle for claim of AUD 3.5 billion with Perdaman Chemicals, which has agreed to accept a nominal amount of AUD 7.5 million plus legal costs to be taxed by the court , without admission of any of the allegations of Perdaman.

Perdaman has filed a legal suit against Lanco in Aug 2011, alleging non-compliance with coal supply pact for the company's upcoming urea plant in Western Australia. The company has stated in its Press Release that the settlement was reached pursuant to the rules of Supreme Court of Western Australia, which allows early and cost effective resolution of such claims. The company goes to further state that it had always maintained that Perdaman's action was baseless and without any merit. If allowed to continue, this case would have taken another 12 to 14 months for the trial and judgment, resulting in significant legal costs and loss of management time. The company said that the purpose behind making this nominal offer was to put an end to this litigation now and move forward with our mine expansion plans.