Lanco Infratech today said its board has approved sale of its solar power arm, with generation capacity of 35 MW, to its subsidiary Lanco Property Management Company Pvt by way of slump sale.
"The board of directors on August 12, 2016, approved the sale of solar power undertaking... Comprising 35 MW by way of slump sale to Lanco Property Management Company Private Limited, a wholly-owned subsidiary," Lanco Infratech told BSE today.
The rationale for slump sale is to securitise the cash flows and ring-fence debt servicing of the solar undertaking.
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The consideration will be in the form of allotment of shares of Lanco Property.
Net worth of solar power undertaking is Rs 32.17 crore, 1.82 per cent of total net worth of Lanco Infratech.
The company's website showed that Lanco Property was incorporated as a professionally-managed firm to manage investor funds meant for the real estate sector.
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