Lanco Infra see's good tidings

Lanco Infratech seems to be hit by a slew of positive news. First, it had hit the 20% upper circuit yesterday after it had announced that its subsidiary had entered into power purchase agreements with Telangana and Andhra Pradesh distribution companies.

That apart, there was news that three group of lenders have approved cost overruns of almost 30% for four power projects. This nod for Rs.33,000 crore financial closure will now help the company execute 4036 MW projects over the next 24 months. This will also enable the company to execute almost all of its Rs.28,000 crore EPC contracts.

Based on these two news, the company announced that it had decided to temporarily shelve its asset sale plans. But at the same time, it said that it has plans to sell some 3000 MW worth of power assets in FY18 to retire debt to the tune of Rs.18,000 crore.

The stock, naturally, with all these good news, is in the green, up 8% at Rs.4 levels. Its 52-week high and low stands at Rs.8.07 and Rs.2.46 respectively.