GTL Limited

GTL Limited

Shares in GTL Ltd plunged more on market talks of a possible default in debt repayment, however the firm's chairman told television channelCNBC on Monday that he believes he has not defaulted and the fundamentals of business remain strong.

Shares of GTL Ltd plummeted as much as 62.3 percent, the sharpest decline in 54 months, to 127.50 rupees, while GTL Infra

dropped as much as 19 percent to an all-time low of 15.25 rupees in a weak Mumbai market.

Dealers said the company may have either fallen behind schedule of repayment or a stake-holder could have sold shares in the open market.

Chairman Manoj Tirodkar said the Mauritius tax treaty is not a matter of concern at this point and the question of Technology Infrastructure, the Mauritius company that holds an 11 percent stake in GTL, did not sell stake.

"As early as Friday we have spoken to them (Technology Infra) and they are long-term investor, they have committed that they will remain with the company so there is no reason for me to believe that that would have changed from Friday to now," Tirodkar said.

There are concerns in the market that India may renegotiate its tax avoidance treaty with Mauritius, which could lead to lesser incentives to invest in the country via the route.

"Promoters equity that is pledged for the purpose of acquisition of towers or otherwise has not been sold out. I'm categorical about that," Tirodkar said.