New Delhi: Shares of Lanco Infratech plummetted the opening trade on Monday after the Reserve Bank of India (RBI) directions to the IDBI bank to initiate insolvency proceedings for the company under the Insolvency and Bankruptcy Code (IBC).
After opening at Rs 2.26, the scrip traded in the early hours by touching a high and low of Rs 2.28 and Rs 1.93 respectively.
As part of the RBI's initiative to cut India's $150 billion in soured debt, the lenders banks have been ordered to take to bankruptcy court. Lanco is among 12 other companies which had filed bankruptcy.
Lanco Infratech, which was founded by Vijayawada-based businessman Lagadapati Amarappa Naidu and his son and former politician Lagadapati Rajagopal, had filed for debt restructuring citing business slowdown since 2013.