Lanco Infratech, Mumbai based road developer company is the first in list to face tough action for being a wilful defaulter. On the instructions of RBI, IDBI bank has decided to move to regulatory courts to try and recover its dues. Reacting on this, the investors sold their stock lots and Lanco share dipped by almost 20% in Monday’s trade.
Lanco Infranet has over ₹17,000 crores worth of debt, which includes fund-based exposure of ₹7,799 crores and non-fund based exposure worth ₹3,349 crores. Although the company has a debt of over ₹17,000 crores, its market capitalisation is way lower than that.
Reserve Bank of India has identified 12 such companies, which will face trials in the coming weeks. Apart from Lanco Infratech, the list includes Amtek Auto, Bhusan Steel and Alok Industries. All of these shares dipped down by significant margins on Monday, however, they have shown recovery on Tuesday. At the moment of this report being written, all the 3 companies, apart from Lanco were trading with positive change in share price.