Security Analysis and Portfolio Management

Name: - Maruthi Nandan Kumar.M

Roll.No:- DM-05-038

Company: - Lanco Infrastructure Ltd.

2000 2002 2003 2004 2005 2006 2007 2008 2009 2010
PAT - 106.47 164.25 42.24 101.43 97.6 730.61 2001.76 2648.68 4863.82

Equity Dividend 0 105 0 0 0 0 0 0 0

%

Dividend Amount 0 80.77 0 0 0 0 0 0 0

Dividend Per Share 0 10.5 0 0 0 0 0 0 0

Face Value 10 10 10 10 10 10 10 10 1

Bonus Ratio 1:06 0 0 0 0 2:01 0 0 0 0

1:02

3:01

EPS (Unit Curr) 0 0 0 0 0 3.17 0 0 0 0

In Year 2006 the company announced bonus to the share holders in three continuous quarters, where the companies
signed with government of Jharkhand .If you compare with the past years in 2006 it incur less profit. And also
subscribing to the equity of the Nagarjuna Power Project, payment for acquisition of 13.3% equity stake in Aban
Power and payments to Globeleq for the acquisition of its 25.1% equity stake in Lanco Kondapalli. The company
entered capital market with an initial public offering, IPO of 4,44,72,381 equity shares of Rs 10 each for cash at a
price to be decided through the 100% book-building process and price band was between Rs 200 and Rs 240 per
equity share.

The company issued a Dividend in year 2003 where LKCL was merged with the company to take advantage of the
close synergy in the business of the two companies, since alarge part of Molten Iron / Pig Iron is consumed by
LKCL for manufacture of DI Pipes.
After the merger, the share capital of LIL, the paid up share value of Rs.10/-was reduced to Rs.2.50 per share and
accordingly one share of Rs.10/- each fully paid up in LIL was issued to all the existing shareholders for every
4shares held by them.

How much is LANCO's dividend and what's the expectation for future dividends?
Ans. LANCO’s is in the growing stage and it is reinvesting the earnings to the future growth plans, so right now
company is not declaring the dividends.

 If we compare both the profits and dividend given by the company .company didn’t have any dividend
from the year 2003 where it impacts the investors’ belief on the company and investors are not aware of the
company performance. From the investors point of view they won’t show interest to invest in the company.
Though the investor money grows in the company but there is a chance of misleading by the company so
while investing in such a companies it is better to be careful.

 If we look the company gave bonus in year 2000 and in 2006 where it clearly says that the company may
issue bonus in 2012. They may announce a bonus for continues three quarters as like 2006 to cover past
years.