Shares in GTL, GTL Infra tank; promoters deny selling stocks
According to GTL's management, company's pledged shares have not been sold, its business as usual for the company and fundamentals remain strong.
By Agencies | Updated:
NEW DELHI: Shares in GTL group companies tanked on speculations of pledged shares, bank debt and margin funding issues pulling stocks lower while the broader index slipped nearly 3 per cent in the trade today.
According to the management, company’s pledged shares have not been sold, its business as usual for the company and fundamentals of the company remain strong.
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. Institutions hold 16.5% stake in GTL and 3.3% in GTL Infra.
"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.
At 11:20 AM, shares in GTL were trading nearly 55 percent lower on BSE at Rs 154 with volumes of near 10 million shares while shares in GTL Infra were trading 34 percent lower at Rs 19.65 with surging volume of 23 million shares on BSE.
Last week there were reports that the GTL Infrastructure, which was seeking to raise about $300 million from institutional investors, has scrapped its fund raising plans due to adverse market conditions. GTL was down 15% on Friday also. GTL is holding 37% stake in GTL Infra.
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.
According to the management, company’s pledged shares have not been sold, its business as usual for the company and fundamentals of the company remain strong.
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. Institutions hold 16.5% stake in GTL and 3.3% in GTL Infra.
"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.
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At 11:20 AM, shares in GTL were trading nearly 55 percent lower on BSE at Rs 154 with volumes of near 10 million shares while shares in GTL Infra were trading 34 percent lower at Rs 19.65 with surging volume of 23 million shares on BSE.
Last week there were reports that the GTL Infrastructure, which was seeking to raise about $300 million from institutional investors, has scrapped its fund raising plans due to adverse market conditions. GTL was down 15% on Friday also. GTL is holding 37% stake in GTL Infra.
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.
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