Tirodkar, 52, started his journey from the humble bylanes of Girgaum in South Mumbai and rose to become a billionaire by 2010. But soon, he fell from grace, triggered by a failed merger with Anil Ambani-owned Reliance Communications in the same year. The stock crash in
June 2011 was so severe that the group has not been able to get back on its feet till date.
Analysts said Tirodkar’s comeback plan depends a lot on the valuation of GTL Infrastructure, which has a market capitalisation of Rs 668 crore as on Tuesday. In April this year, Srei and Tata Teleservices sold their 49 per cent stake in Viom Networks for Rs 7,500 crore. While Viom owns around 42,200 wireless communications towers across India, GTL Infrastructure owns 27,000 towers. “We may sell at an 8-10 times of GTL Infrastructure-Chennai Network’s Ebidta (earnings before interest, depreciation, tax and amortisation) of Rs 1,500 crore. But any investor would first like to have a clean balance sheet and clarity on debt status before it can take the plunge. We are trying to clear out all the pending issues and hope to sell stake as soon as the merger of GTL Infrastructure and CNIL is over,” said Manoj Tirodkar, chairman of GTL group, on Tuesday. On Monday, the company announced conversion of loans into equity that would bring down the promoter’s stake in the company.
An ambitious Tirodkar had taken over Chennai Network from Aircel for Rs 8,100 crore in 2010 in an all-cash deal. But soon, the debt-funded transaction turned sour as the company’s cash flows failed to match its obligations. The banks, then, approved a corporate debt restructuring and GTL Infrastructure and CNIL then repaid Rs 3,392 crore to lenders without any incremental borrowings over the past few years. According to BSE statistics, GTL Ltd and GTL Infrastructure’s standalone debt was Rs 6,600 crore as of March this year.