The chairman of India's GTL said speculation led to the stocks of GTL Ltd. and GTL Infrastructure Ltd. being hammered in intraday trade Monday.
GTL Ltd. shares plummeted as much as 62% to a 52-week low of 129.00 rupees and GTL Infrastructure fell 47.0% to an all-time low of 15.75 rupees in morning trade due to market chatter that lenders to whom the companies' had pledged stock had sold the shares in the open market.
The two stocks extended their opening losses as they tracked a 3.1% fall in the 30-share benchmark Sensex due to market talk that the Indian government was seeking to impose a capital gains tax on investments routed through Mauritius.
The Sensex recouped some of it losses after a senior tax official said that India is not currently in talks with Mauritius to review a double tax avoidance treaty. The Sensex was trading down 1.8% at 0900 GMT. However, shares of GTL Ltd. and GTL Infra remained under pressure in afternoon trading.
GTL group founder and Chairman Manoj Tirodkar said that no shares of GTL Infra are pledged to lenders, while only 12.85% of GTL Ltd. shares have been pledged. He added that no investor had informed the company of an intention to sell and that the sharp fall in the companies' shares was due to a "speculative attack" on the stocks.
In a statement to the stock exchanges, GTL Ltd. said "neither promoters nor entities relating to promoters have sold any shares, including the shares that have been pledged".
Telecom network services provider GTL Ltd. holds a majority stake in telecom tower owner GTL Infra.
On Friday, shares of GTL Ltd. and GTL Infra fell 16.5% and 7.3% respectively after the Economic Times reported that GTL Infra had scrapped plans to raise about $300 million from institutional investors due to adverse market conditions.
In March, GTL Infra said it had appointed investment banks to explore capital-raising alternatives after it received shareholders' approval in December.
In a statement to the exchanges Monday, GTL Infra said it had "never launched any road show" for the planned share sale as market conditions, global sentiment and clarity over government policies weren't favorable. It added that it would raise funds at the "appropriate time".
"As far as the companies are concerned, all operations are on course and running smoothly," said Vikas Arora.
In morning trade Monday, GTL tumbled 55.7% to 150.45 rupees and GTL Infra plummeted 42% to 17.35 rupees in a Bombay Stock Exchange market 1.5% lower.
GTL owns a majority stake in telecom tower firm GTL Infrastructure.
GTL Ltd. shares plummeted as much as 62% to a 52-week low of 129.00 rupees and GTL Infrastructure fell 47.0% to an all-time low of 15.75 rupees in morning trade due to market chatter that lenders to whom the companies' had pledged stock had sold the shares in the open market.
The two stocks extended their opening losses as they tracked a 3.1% fall in the 30-share benchmark Sensex due to market talk that the Indian government was seeking to impose a capital gains tax on investments routed through Mauritius.
The Sensex recouped some of it losses after a senior tax official said that India is not currently in talks with Mauritius to review a double tax avoidance treaty. The Sensex was trading down 1.8% at 0900 GMT. However, shares of GTL Ltd. and GTL Infra remained under pressure in afternoon trading.
GTL group founder and Chairman Manoj Tirodkar said that no shares of GTL Infra are pledged to lenders, while only 12.85% of GTL Ltd. shares have been pledged. He added that no investor had informed the company of an intention to sell and that the sharp fall in the companies' shares was due to a "speculative attack" on the stocks.
In a statement to the stock exchanges, GTL Ltd. said "neither promoters nor entities relating to promoters have sold any shares, including the shares that have been pledged".
Telecom network services provider GTL Ltd. holds a majority stake in telecom tower owner GTL Infra.
In March, GTL Infra said it had appointed investment banks to explore capital-raising alternatives after it received shareholders' approval in December.
In a statement to the exchanges Monday, GTL Infra said it had "never launched any road show" for the planned share sale as market conditions, global sentiment and clarity over government policies weren't favorable. It added that it would raise funds at the "appropriate time".
"As far as the companies are concerned, all operations are on course and running smoothly," said Vikas Arora.
In morning trade Monday, GTL tumbled 55.7% to 150.45 rupees and GTL Infra plummeted 42% to 17.35 rupees in a Bombay Stock Exchange market 1.5% lower.
GTL owns a majority stake in telecom tower firm GTL Infrastructure.
