MBL Infra hits 5% upper circuit limit on resolution plan

NEW DELHI: Shares of MBL Infrastructure hit the upper circuit limit of 5 per cent on Thursday after the ET reported that the firm could become India’s first roadbuilder to achieve a successful insolvency resolution on about Rs 1,700 crore of outstanding loans.

The promoter Anjanee Kumar Lakhotia has agreed to infuse more capital into the business. Lakhotia will bring in about Rs 120 crore, nearly five times more than the capital he had promised initially.

Following the development, the stock rose 4.95 per cent to close at Rs 24.40 on BSE.

The repayment period on the loans is also proposed to be reduced to about 9.5 years from 12, ET reported.

“Creditors seemed receptive about the revised resolution plan, and they have gone back to their respective boards for management approvals,” sources told ET.

A consortium of about 15 lenders, including SBI, PNB, and RBL Bank, have now decided to hold no further discussions on the revival scheme, and they would take the final decision well before December 23, the deadline set for the company under insolvency and bankruptcy proceedings that started eight months ago. SBI is the lead lender.