Shares of telecom infrastructure companies GTL Ltd and GTL Infrastructure plummeted on Monday on concerns over debt repayment, pledged shares and fund raising, despite the chairman’s assurances it had not defaulted and that its business fundamentals remain strong.
GTL shares fell by over 62.4% to R127.8 while GTL Infra shares dropped by 43.0% to Rs 16.9 on the Bombay Stock Exchang (BSE). In intra-day trade, GTL stock nose-dived by 63.5 % to hit a 52-week low of Rs 124.0, while that of GTL Infra fell by 47.0% to hit an all-time low of Rs 15.8.
Rumours of promoters pledging more than 50% of their stake and foreign investors to pulling out due to a review of India’s tax treaty with Mauritus were the main triggers.
However, the company later clarified to the BSE that there has been no pledging of shares.
“The company would like to confirm that neither promoters nor entities relating to promoters have sold any shares, including the shares that have been pledged,” GTL said in a filing.
Company officials said they have approached the Securities and Exchange Board of India to probe if there was any foul play.