Lanco Infra spikes up

Lanco Infra has turned into a penny stock and today, after a long time of breaching the lower circuit, it today is up 5.5% at Rs.8.55, showing some good traction in volumes.

The sudden spike up of interest in the stock is after the company stated that it plans to sell additional 3000 MW of power assets.  Through this sale, it hopes to raise up to Rs.15000 crore in cash and thereby retire part of the company debt of over Rs. 36,000 crore.

The company which is fighting for survival, strangled by a tight noose of huge debt is a part of the Corporate Debt Restructure process. Under this, some 25 lenders have agreed to restructure the loans and have laid down certain conditions. It is a part of these conditions, to sell monetize assets to deleverage the balance sheet.