GTL Ltd and GTL Infrastructure Ltd, part of the Global Group of companies founded and promoted by Manoj Tirodkar, on Monday said they have appointed SBI Capital Markets (SBI Caps) to review and assess their financials and suggest appropriate steps to protect lenders? interest.
These companies had been under investor scrutiny ever since their shares fell significantly on the bourses last week, with GTL?s shares plunging 62% to R129, and GTL Infrastructure, 47% to an all-time low of R15.75 following market rumours that lenders to whom the companies pledged their shares had sold them in the open market.
The two companies said in identical statements to the exchanges on Monday that SBI Capital will also review the working of the telecommunications sector. They are also exploring options to consolidate operations via potential mergers or strategic stake sale. ?The companies had called for a meeting of lenders to update them on current events. This communication is being provided to dispel any adverse rumours being spread against the company, which have caused tremendous harm to the minority shareholders,? said the notice to the exchanges. SBI Caps will be preparing a report within 30 days, the statement added. Officials at SBI Caps refused to comment on this.
?It?s a crucial time when the company needs to manage its debt burden effectively. The task at hand for Tirodkar is to evaluate ways to infuse equity in his companies and deleverage the balance sheets. SBI Caps will look at their investment portfolio and suggest ways to reduce debt. Talks with the management suggests it is open for all suitable options for fund raising,? said an analyst on the condition of anonymity.
?We have also observed increase in volumes and sharp fall in the share price of the company, and several rumours appearing in sections of electronic and print media about the company. We would like to inform that the company continues to conduct its business in normal course and is focusing on growing the business,? GTL said last week in a notice to the exchanges. ?We have been informed by all our long-term investors whom we have contacted, including Technology Infrastructure, that they have not sold their holding,? it had said in an email response.
GTL and GTL Infra?s shares on Monday closed at R106.10 and R15.35, down 3.33% and 4.36%, respectively, on the BSE. GTL?s consortium of lenders include SBI, ICICI Bank and Standard Chartered. GTL and GTL Infra have a net debt of R380 crore and R7,000 crore, respectively.