Lanco Infra soars 18% as unit settles litigation by Perdaman
Mumbai: Shares of Lanco Infratech Ltd Monday surged 18 percent in morning trade, after its Australian subsidiary, Griffin Coal, said the protracted litigation for a claim of AUD 3.5 billion initiated by Perdaman Chemicals against it has been settled.
Cheering the news, shares of the company shot-up by 17.88 percent to Rs 12.39 on the BSE.
At NSE, the scrip jumped 18 percent to Rs 12.40.
According to a release issued by Lanco, the Australian coal miner has agreed to pay Perdaman a nominal amount of AUD 7.5 million, plus legal costs to be taxed by the Court, without admission of any of the allegations of Perdaman.
Lanco is in a legal battle with Australia's Perdaman Industries, which filed an AUD 3.5 billion (around Rs 19,600 crore as per latest exchange rate) lawsuit against Lanco in Australia in 2011, alleging non-compliance with coal supply pact for the company's upcoming urea plant in Western Australia.
This settlement was reached pursuant to the rules of Supreme Court of Western Australia, which allows for early and cost effective resolution of such claims, the release said.
Rally in the stock outperformed the sluggish stock market where the BSE benchmark Sensex was trading at 19,313.36, up 26.64 points at 1142 hrs. PTI