Meanwhile, the BSE Sensex was up 34.60 points, or 0.22%, to 15,847.96.
On BSE, 14.32 lakh shares were traded in the counter as against an average daily volume of 19.08 lakh shares in the past one quarter.
The stock hit a high of Rs 10.25 and a low of Rs 9.50 so far during the day. The stock had hit a 52-week low of Rs 8.50 on Monday, 19 December 2011. The stock had hit a 52-week high of Rs 66.40 on 4 January 2011.
The stock had underperformed the market over the past one month until 22 December 2011, sliding 21.97% compared with the Sensex's 1.57% decline. The scrip had also underperformed the market in past one quarter, tumbling 41.77% as against 3.35% fall in the Sensex.
The mid-cap infrastructure company has an equity capital of Rs 240.78 crore. Face value per share is Re 1.
According to reports, state-owned New India Assurance, the lead insurer, would have to bear half of the claim amount. General Insurance Corporation of India was the reinsurer for the policy.
Confirming the development, a senior New India Assurance official told the media that the insurer had already paid Rs 50 crore on the account, and the remaining amount would be settled shortly.
According to reports, Lanco Infratech made the claim after fire broke out at the company's 1,200-megawatts (MW) Anpara power project in Uttar Pradesh in April 2011, which damaged a part of the boiler. The air heater of the power project was damaged, causing the delay in commissioning the first 600-MW unit. The unit, which became operational earlier this month, was originally scheduled to be commissioned in May 2011. Hence, Lanco has made claims for a delay of five months.
Though the damage has been fixed now, the project has been delayed. The total claim includes profit for the last five months, in addition to the cost of fixing the problem, reports added.
The 'advanced loss of profit' (ALOP) policy generally pays for the actual loss of gross profit incurred during the period of delay, from the scheduled date of commencement of commercial operations till the actual date of commencement of operations, subject to a time excess and indemnity period (the time for which benefits are payable under an insurance policy) selected.
On a consolidated basis, Lanco Infratech reported net loss of Rs 259.48 crore in Q2 September 2011 as against net profit of Rs 70.46 crore in Q2 September 2010. Net sales fell 7.2% to Rs 1896.60 crore in Q2 September 2011 over Q2 September 2010.
The prime reasons for the fall were spike in profits on transactions with subsidiaries which were eliminated, higher tax provision and incurring high forex loss (against gain in September 2010 quarter).
The company acquired the Griffin Coal Mining Pty (GCMC) and Carpenter Mine Management Pty (CMM) through its subsidiary Lanco Resources International Pte (LRIPL) and step down subsidiary Lanco Resources Australia Pty (LRAPL) on 28 February 2011. Thus the consolidated results for the quarter ended September 2011 are not comparable with its corresponding previous period.
Lanco Infratech has presence in the domains of engineering, procurement and construction (EPC), power, solar, natural resources and infrastructure.