A muted debut by Lanco Infratech in market

Mumbai, Nov 27: Lanco Infratech on the first day, today, was trading at Rs 256, a 6.6 per cent premium over IPO price of Rs 240, brokers said.

The stock hit a low of Rs 255 and high of Rs 275 as 2.05 lakh shares changed hands in the counter on BSE and NSE.

The company had priced its IPO at the higher end of the Rs 200 to Rs 240 price band.

It has a large equity base of Rs 222.36 crore with face value of Rs 10 per share and post issue FII holding of 6.35 per cent.

Lanco Infratech is an infrastructure development company with interests in power, construction and property development. The company currently owns 11 power projects, of which five are in operation and six are under development. Its power generation capacity will increase seven times the existing capacity in the next four years. As a result, revenue and profit from power business will increase significantly. The company has also been qualified to bid for two ultra mega power projects - Sasan and Mundhra, brokers said.

Its construction division had an order book of Rs 1611.83 crore on 30 September 2006. This includes contracts worth Rs 1229.95 crore with affiliates of Lanco Infratech. The entire order book will be executed by 2010, brokers added.

UNI