Lanco Infratech Ltd has entered into an agreement for sale of solar power undertaking of the company through a slump sale to Lanco Property Management Company Pvt Ltd, a wholly-owned subsidiary of the company.
The solar power undertaking has 35 MW of solar power capacity which registered a turnover of ₹76.99 crore and loss of ₹11.78 crore and has a net worth of ₹32.7 crore, according to a regulatory statement made to the BSE.
The diversified cash-strapped infrastructure company has indicated that the transaction is proposed to be completed before September 30. The consideration will be in the form of allotment of equity shares by LPMCPL to the company.
This is a case of slump sale and the matter is a related party transaction. The sale is aimed at securitising the cash flows and ring fence the debt servicing part of the solar power undertaking, the company informed the BSE.