Lanco promoters worth over Rs 4000 cr

Lanco Infratech was listed on the bourses at Rs 270 a share, a 12.5 per cent premium to its issue price of Rs 240. The shares however closed almost flat at Rs 241 on the National Stock Exchange.

Chief financial officer, J Suresh Kumar, told Business Standard that the listing today was better than expected. " We thought the scrip will be listed at Rs 240 or Rs 245 and remain there.

We are pleasantly surprised to see that it was listed at Rs 270 and hovered around Rs 255 to Rs 270 for a long time," he said.

Total turnover stood at Rs 483.87 crore on the debut day, which saw 1.93 crore shares changing hands.

The IPO of Lanco Infratech, which is into infrastructure development with interests in power generation, construction and property development, was subscribed 10 times.

The company with a market capitalisation of Rs 5,368 crore is ranked at 103. The promoters with 75 per cent holding in the company are worth over Rs 4,000 crore.

Out the remaining 25 per cent holding, ESOPs constitute 5 per cent and the rest belong to the public.

According to Kumar, that about 16 lakh shares were brought by institutional investors during the Monday's trading. "Weak investors moved out and the scrip got into strong hands. This is a good sign", he pointed out.

Lanco Infratech along with its subsidiaries and Lanco Kondapalli operates 518 MW pf power plants. In addition, the company is implementing various power projects aggregating to 3275 MW of power generating capacity.

The company stated that part of the issue proceeds would be deployed to capitalise its subsidiaries, which were at various stages of development, for subscribing to the equity of Nagarjuna Power Project, payment for acquisition of 13.3 per cent equity stake in Aban Power and payment to Globeleq for acquisition of 25.1 per cent stake in Lanco Kondapalli.