Shares of Lanco Infratech surged nearly 20 per cent in trade on Monday after the company said it was looking to raise up to $1 billion in next 18 months via stake sale and listing power business.
The stock ended 19.89 per cent higher at Rs 6.39 on the Bombay Stock Exchange (BSE), but was still trading 13 per cent below its 52-week high that it touched in February this year.
Lanco, which has been losing money in recent years amid a high debt load and delays in finishing its power projects, posted a consolidated net profit of Rs 98.98 crore in the second quarter of the current fiscal year, 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.
According to the statement, the company earned profits on the consolidated basis after a gap of three years.
Elaborating further, the company said that Lanco Kondapalli Power a step down subsidiary of the company received a favourable order from Supreme Court directing Andhra Pradesh utilities for MAT reimbursement of about Rs 175 crore plus interest towards tax component forming part of the tariff for the period FY 2001 to FY 2012.
After the apex court order, the company has recognised the said amount as income during the second quarter.
(With inputs from Reuters)