Shares of Lanco Infratech hit upper circuit for the second consecutive trading session on Thursday on reports that the company will raise about Rs 6,600 crore ($ 1 billion) through the sale of one of its large power projects and listing of its power business in the next two years. The share price of the company surged 9.86 per cent to Rs 7.02.
A spurt in volumes was witnessed on the counter. On BSE, 20.53 lakh shares were traded in the counter, compared with an average volume of 13.71 lakh shares in the past two weeks.
Lanco, which has been losing money in recent years amid a high debt load and delays in finishing its power projects, said it returned to profitability in the three months ending September 30 after revenue jumped as work restarted at its plants.
The company also wants to raise fresh capital by selling one large power project in 2017 once all its plants are fully operational, CFO T Adi Babu told Reuters in a telephone interview.
The company on Monday also posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal after three years, due to tax reimbursements and favourable power tariff order.
The firm posted a loss of Rs 527.48 crore in the same period last year, Lanco Infratech Ltd (LITL) said in BSE filing.
The company also announced on Monday that its subsidiary Lanco Solar Private Limited signed a landmark agreement with Chhattisgarh Government to bring Chhattisgarh on the global silicon map. As per the MOU inked with the Chhattisgarh Government, Lanco Solar will set up 100 MW solar cell manufacturing plant.
According to the statement, the company earned profits on the consolidated basis after a gap of three years.
In the past one year, the share price of the company fell 4.77 per cent to Rs 6.39 on November 24. The share price of the company was at Rs 6.71 on November 24 last year. Sensex declined 9.5 per cent during the same period.
The share price of the company has touched a 52 week high of Rs 7.24 on Feb 28, 2015 and a 52 week low of Rs 2.46 on Aug 25, 2015.
(With inputs from agencies)