GTL Limited Stocks has De-Rated (plummets)
GTL group companies tanked on speculation of the pledged shares, bank debt and margin financing issues drag shares lower, while the broader index slid nearly 3 percent in the industry today.
Shares in the Indian network engineering services company GTL (GTL.NS) fell more than 50 percent Monday morning, while the consolidated company GTL Infra (GTLI.NS) fell more than 40 percent.At 10:40 hours shares of GTL and GTL Infra plummented 60 % and 40% for RS 138 and RS 18, respectively.
Panicky investors chose to dump the GTL Group’s shares on the back of three reasons: the company’s higher debt, scraping fundraising plan and the Mauritius government’s tax treaty with India level.
According to management, promised the company the shares are sold, their business as usual for the company and the foundation for the company remains strong.
While analysts tracking the group’s struggle to find out the reason behind this sharp fall, the company MD, Manoj Tirodkar, CMD told CNBC TV18, “It’s very speculative attact on the share price. Basics of the business remains strong and we will continue to focus on our business. ”
GTL shares plunged by 62.04 percent to hit a year low of Rs 129 on BSE, while GTL Infrastructure was down 46.96 percent to hit a 52-week low of Rs 15.75.
The market cap of GTL slipped to RS 1,496 crore from Rs 3,306 crore, while GTL Infra fell to Rs 1,881 crore from Rs 2,843 crore.
Institutions hold 16.5% stake in GTL and 3.3% in GTL Infra. Reports suggest that GTL Infra scrapped $ 300 million fundraising plans. Almost half of the promoter’s equity in the GTL committed by promoters.The shares with investment from Mauritius is under pressure.
GTL has touched a 52-week low of Rs one hundred and forty first It was trading with volumes of 2,565,006 shares. The final book value of the company is Rs 131.86 per share. This value was the price to book value of the company 1.17. The proceeds 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. This value was the price to book value of the company 1.09.
Last week it was reported that GTL Infrastructure, who tried to raise about $ 300 million from institutional investors, has scrapped its fundraising plans because of unfavorable market conditions. GTL had fallen by 15% on Fridays too. GTL holds 37% stake in GTL Infra.
