GTL Ltd inventory value slumps 62% on big volumes; firm denies promoters promoting stake

Analysts describe it as market response to firm’s scrapping plans to lift $300 million. Group firm GTL Infrastructure slides 43%

The shares of GTL group tanked amidst speculations of heavy promoting of the corporate’s pledged shares, a cost which the corporate has denied. However market specialists consider that such sort of aggressive promoting occurs primarily when the corporate’s pledged shares are offered within the open market.

The GTL share costs have been falling since Friday and at this time GTL Restricted crashed to Rs127.80, a fall of round 62% and group firm GTL Infrastructure fell by 43% to Rs16.85 on the Bombay Inventory Trade.

The share value droop was on a pointy surge in buying and selling volumes. The entire buying and selling quantity from the BSE and the NSE (Nationwide Inventory Trade) for GTL Restricted rose to 7.33 crore shares at this time, from round 16 lakh shares on Friday. For GTL Infrastructure, at this time’s buying and selling volumes stood at an enormous 16.05 crore shares from a mere 14.72 lakh shares within the earlier buying and selling session.

This means the likelihood that promoters’ pledged fairness has been offered. As an illustration, it may very well be a financial institution, with whom the corporate has pledged shares for elevating funds, and the monetary entity might have offered the shares. Such massive buying and selling transactions are very confidential and solely the concerned events are conscious of the identical.

In GTL Restricted, the promoters maintain 52.71% of the fairness capital, out of which the promoters have pledged solely 12.85%.

The corporate denied promoting off its pledged shares, or that any shares have been offered by Know-how Infrastructure, which holds 11% in GTL. Chairman Manoj Tirodkar was quoted in a report as saying, “Promoters’ fairness that’s pledged for the aim of acquisition of towers or in any other case has not been offered out. I am categorical about that. As early as Friday now we have spoken to them (Know-how Infra) and they’re a long-term investor, they’ve dedicated that they may stay with the corporate so there is no such thing as a purpose for me to consider that that may have modified from Friday to now.”

In the meantime, the tales within the media counsel that the corporate has scrapped its plan to lift $300 million. Analysts consider that the inventory has sharply reacted to it. “The corporate’s debt plan of round $3 million has been scrapped. This raises doubts on the credibility of the administration. Additional, the corporate will face issues in elevating funds. The inventory has reacted negatively primarily due to this information,” an analyst with a broking agency instructed Moneylife, preferring anonymity.
GTL Ltd issued a clarification to the BSE stating that, “The corporate wish to affirm that neither promoters nor entities regarding promoters have offered any shares, together with the shares which have been pledged.”

Equally, GTL Infrastructure issued a clarification. The corporate stated, “The corporate has by no means launched any roadshow for the above stated situation. We consider that the current market situations, coverage readability on the telecom sector and world market sentiments should not beneficial for the difficulty at this stage. We wish to inform you that the corporate is in a extremely capital-intensive enterprise and it’ll elevate funds at acceptable instances. We’ll maintain the inventory exchanges up to date of any developments on this matter. The promoters and promoter group haven’t pledged any shares.”

GLT replied to the e-mail question despatched by Moneylife stating that, “We have been knowledgeable by all our long-term buyers together with Know-how Infrastructure Fund that they haven’t offered their holding.” The corporate additionally despatched the clarification letter (particulars talked about above) despatched to the inventory alternate by them.

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