Lanco Infratech Ltd (LITL)

a) Nature of Business
LITL was incorporated in 1993 as Lanco Constructions Ltd in Secunderabad (Andhra
Pradesh); its name was changed to the current one in 2000. The company provides EPC
services, largely to its own subsidiaries and affiliate entities. The Lanco group includes
subsidiaries and affiliates operating across the infrastructure sector, including
construction, power, EPC, infrastructure, and property development. LITL is the Lanco
group's flagship company. All businesses of the group are under LITL, the listed Holdco
of the group.

b) Promoters
Lanco was founded by a businessman Lagadapati Amarappa Naidu and his son
Lagadapati Rajagopal. While Rajagopal remains inactive, his brother Lagadapati
Madhusudan Rao is the executive chairman. Promoters hold ~ 71% of shares in the
company.

c) Investors : Nil In Dec15 IDFC has converted its loan of Rs. 350 cr to CCDs.

d) Nature of Opportunity
Lanco Infra is looking at carving out its thermal power assets into a separate holding
company and then sell a 51% stake in the entity. They are looking at initially raising
capital for operational assets and use the initial deal proceeds to revive the rest of the
portfolio. The capacity of operational assets is 3460 MW which includes 1800 MW of
Thermal assets while 64 MW of renewable assets and rest gas based power projects.
Further, company has 4636 MW power projects under construction with estimated
completion by FY18.
Plant Fuel Capacity Offtake terms
Anpara Coal 1200 MW Long Term PPA
Kondapalli Gas 1476 MW Short Term / Long Term PPA
Amarkantak Coal 600 MW Long Term PPA
Tanjore Gas 120 MW Long Term PPA
Renewables Solar 41 MW Long Term PPA
Renewables Hydro/Wind 23 MW Long Term PPA
Total 3460 MW

Further, there was also news about the company stating that it has finalised four bidders
for the sale of power assets.

e) Size & Timing: 3460 MW of assets are up for strategic investment. The company is in a
talk with investors since 2014 but is waiting for better valuation for its assets.

f) Strategy : We should approach Lanco to understand their asset sell status and help them
raise the strategic or financial investment for their power portfolio.
g) Key People: L. Madhusudan Rao, Executive Chairman and G. Venkatesh Babu
Executive Chairman