Lanco Infratech extended rally; close over 10% higher

MUMBAI: Shares of Lanco Infratech ended the day with gains of 10.48 per cent at Rs 4.14 following reports that the company may sell power projects having a capacity of 3,000 MW from 2018 onwards and expects to get Rs 25,000 crore, which would help pare debt and also infuse fresh capital into the group.

The stock climbed 10.66 per cent to Rs 4.15 at the BSE.

On the NSE, it rose sharply by 10.66 per cent to Rs 4.15.

The scrip had rallied over 17 per cent in the previous session also, as the company's arm, Lanco Kondapalli Power has entered into power purchase agreements with electricity distribution companies of Telangana and Andhra Pradesh.

L Madhusudhan Rao, Executive Chairman of Lanco, said the current power portfolio of the group is expected to touch 8,000 MW by 2018 from the current 3,400 MW.

Lanco had Rs 33,000 crore debt as on March 31, 2015.

"In FY16, we are not selling any projects. Most of the asset sale will happen from FY18 onwards. Our target is, we will sell definitely 3,000 MW from this 8,000 MW basket.

"But which asset we will sell and all, we will choose based on the value and potential price," Rao had said yesterday on the sidelines of the company's Annual General Meeting (AGM) held in Hyderabad.