GTL, GTL Infra shares nosedive on heavy selling

MUMBAI: Shares of telecom infrastructure firms GTL and GTL Infrastructure came under heavy selling pressure, plunging by over 62 per cent and 43 per cent respectively, amid rumours that their promoters have pledged more than 50 per cent of their stake.

This has prompted the companies to lodge a complaint with market regulator SEBI for a probe.

"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 to the Bombay Stock Exchange.

There were also rumours that one of the companies has failed to meet Foreign Currency Convertible Bonds (FCCB) repayment obligations. The company, however, clarified that the repayment is due only in 2012.

The company officials said they have approached Sebi asking it to probe if there was any foul play.

On the issue of promoters pledging majority shares, the GTL statement said, "The promoters have pledged only 12.85 per cent of the equity capital of the company, which was already intimated to the stock exchanges, as part of our regular disclosures."

The promoters hold 52.71 per cent of equity in the company, the statement said adding that it "continues to conduct its business in normal course and is focusing on growing the business."

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.

Shares of GTL closed at Rs 127.80, down by 62.4 per cent from previous close, while GTL Infra settled at Rs 16.85, down 43.27 per cent on BSE.

In intra-day trade, GTL's stock nosedived by 63.48 per cent to hit a 52-week low of Rs 124.10, while that of GTL Infra plummeted by 46.96 per cent to hit an all-time low of Rs 15.75.

On the volume front 221.89 lakh shares of GTL changed hands on the BSE, while 457.61 lakh shares of GTL Infra were traded during the day.

article source :http://timesofindia.indiatimes.com/business/india-business/GTL-GTL-Infra-shares-nosedive-on-heavy-selling/articleshow/8925406.cms