Norway bank picks 7.19% in Lanco Infra

Written by P Vinod Kumar | Kavitha Venkatraman | Chennai | Updated: Mar 24 2011, 08:47am hrs
Norges Bank, Norways central bank, has picked up 7.19% stake in Hyderabad-based Lanco Infratech (LITL), part of the R8,000 crore infrastructure-to-power group. According to information available with FE, Norges Bank has picked up 1,00,00,000 equity shares of Lanco Infratech from the open market. Lanco Infratech shares are trading at R38-Rs 39 range. The stock has clocked an yearly high of R74.80 and an yearly low of R30.80.

Lanco had recently tied up funds for its R6,930 crore, 1,320-mw, coal-fired power project to be set up in Dhenkanal district of Orissa. Lanco has tied-up with a consortium of lenders led by ICICI Bank, country's largest private sector lender, for arranging the debt to finance the project. LITL is developing the project through a special purpose vehicle (SPV), Lanco Babandh Power, a wholly-owned subsidiary of the company.

After the acquisition, Norges Bank becomes the second largest shareholder in KITL with its 7.19% stake. The promoters hold close to 68% stake in the company. Other major stake holders include LCL Foundation (3.34%), Government Pension Fund Global (2.84), Sloane Robinson (close to 2%), and Morgan Stanley Mauritius Company (1.56%).

Lanco has been making a major push into power generation and trading and firmed up plans to have an installed capacity of 4,000 mw by the end of the current fiscal by adding close to 2,600 mw to its existing capacity. LITL currently operates two gas-fired power projects, one each in Tamil Nadu and Andhra Pradesh with an installed capacity of over 850 mw. Besides, it is running a coal-fired power project in Udupi in Karnataka with an installed capacity of 600 mw.

Lanco is currently setting up 10 power projects, including the Orissa based one on different feedstock with a combined capacity of 7,153 mw.

It has another five projects under its belt which, once completed, would add over 2,550 Mw to its total capacity. For the third quarter ended December last, Lanco has grosssed a net sales of R 1548.38 crore and a net profit of R204.14 crore.