Panicky investors chose to dump GTL group shares on the back of three-pronged reasons: company's higher debt, scrapping of fund raising plan and the Mauritius government's tax treaty plan with India.
At 10:40 hours, shares of GTL and GTL Infra plummented 60% and 40% respectively to Rs 138 and Rs 18 respectively.
While analysts, tracking the group, struggle to figure out the reason behind such sharp fall, the company MD, Manoj Tirodkar, CMD told CNBC TV18, "it is highly speculative attact on the stock price. the fundamental of the business remains strong and we will continue to focus on our business."
"In the light of current concerns, a 10-20% fall would have been normal. However, I fail to understand the reason behind such a huge decline in share pirces. If company fundamentals remain unchaged, we will not de-rate GTL stocks based on current news flows," said an analyst from a foreign brokerage.
Institutions hold 16.5% stake in GTL and 3.3% in GTL Infra. Reports indicate that GTL Infra scrapped USD 300 million fund raising plans. Nearly half of promoter equity in GTL is pledged by promoters.The stocks with investments from Mauritius are under pressure.
On fund raising front, Tirodkar clarified that telecom companies are finding it extremely difficult to raise funds due to sectoral issues.
India, Mauritius will restart talks on tax treaty. Mauritius agrees to revise tax treaty with India. Around more than 40% of FDI in India is from Mauritius.
Mauritius-based Technology Infra holds 11% stake in GTL Infra.
Technology Infra is classified as FDI in GTL Infra's prospectus.
However, the MD refuted any possiblity of Technology Infra withdrawing their investments from the group.
"I had talks with them last Friday. They remain long term investors in our company with sponsors of different large banks across Europe," he told CNBC TV18.
There is a possibility that the company's tower deal will not go through. GTL was down 15% on Friday also. GTL is holding 37% stake in GTL Infra.
GTL has touched a 52-week low of Rs 141. It was trading with volumes of 2,565,006 shares. The latest book value of the company is Rs 131.86 per share. At current value, the price-to-book value of the company was 1.17. The dividend yield of the company was 1.94%.
GTL Infrastructure touched a 52-week low of Rs 16.30. It was trading with volumes of 6,587,782 shares.The latest book value of the company is Rs 17.05 per share. At current value, the price-to-book value of the company was 1.09.
At 10:40 hours, shares of GTL and GTL Infra plummented 60% and 40% respectively to Rs 138 and Rs 18 respectively.
While analysts, tracking the group, struggle to figure out the reason behind such sharp fall, the company MD, Manoj Tirodkar, CMD told CNBC TV18, "it is highly speculative attact on the stock price. the fundamental of the business remains strong and we will continue to focus on our business."
"In the light of current concerns, a 10-20% fall would have been normal. However, I fail to understand the reason behind such a huge decline in share pirces. If company fundamentals remain unchaged, we will not de-rate GTL stocks based on current news flows," said an analyst from a foreign brokerage.
Institutions hold 16.5% stake in GTL and 3.3% in GTL Infra. Reports indicate that GTL Infra scrapped USD 300 million fund raising plans. Nearly half of promoter equity in GTL is pledged by promoters.The stocks with investments from Mauritius are under pressure.
On fund raising front, Tirodkar clarified that telecom companies are finding it extremely difficult to raise funds due to sectoral issues.
Mauritius-based Technology Infra holds 11% stake in GTL Infra.
Technology Infra is classified as FDI in GTL Infra's prospectus.
However, the MD refuted any possiblity of Technology Infra withdrawing their investments from the group.
"I had talks with them last Friday. They remain long term investors in our company with sponsors of different large banks across Europe," he told CNBC TV18.
There is a possibility that the company's tower deal will not go through. GTL was down 15% on Friday also. GTL is holding 37% stake in GTL Infra.
GTL has touched a 52-week low of Rs 141. It was trading with volumes of 2,565,006 shares. The latest book value of the company is Rs 131.86 per share. At current value, the price-to-book value of the company was 1.17. The dividend yield of the company was 1.94%.
GTL Infrastructure touched a 52-week low of Rs 16.30. It was trading with volumes of 6,587,782 shares.The latest book value of the company is Rs 17.05 per share. At current value, the price-to-book value of the company was 1.09.
