GTL promoters pledge 99% holding with lenders

Global Holding Corporation, which holds over 52%, pledges 50.5 mn shares.

Promoters of telecom infrastructure company GTL pledged 99.06 per cent of its holding in the company with lenders, stock exchange disclosure showed today. Manoj Tirodkar-controlled Global Holding Corporation, which has a holding of over 52 per cent, has pledged 50.5 million shares.

Global Holding pledged 28.5 million more shares of GTL on July 4, a disclosure on the Bombay Stock Exchange (BSE) website showed. The disclosure made by GTL came after the stock market hours. Global Holding owned 50.98 million shares in GTL, out of which 50.50 million shares were now pledged with the lenders, the disclosure showed.
 

ON SHAKY GROUND

• Global Holding pledged 28.5 million more shares of GTL on July 4, a disclosure on BSE website shows
• Promoters owned 52.53 per cent stake in GTL as of March 31, of which 52.18 per cent was owned by Global Holding
• GTL shares have lost over 75 per cent of their value since closing at '339.90 on June 17
• The company has seen a sharp drop in revenues and cash flows due to the current squeeze in the telecom sector

Promoters owned 52.53 per cent stake in GTL as of March 31, out of which 52.18 per cent was owned by Global Holding.

Shares of GTL fell Rs 5.05, or 5.86 per cent, to Rs 81.10 on the BSE today. The company’s stock plunged as much as 62 per cent on June 20 on market buzz that lenders to whom the company had pledged shares have sold the shares in the open market. At that time, GTL had clarified that neither promoters nor entities relating to promoters have sold any shares, including the shares that have been pledged.

GTL shares have lost over 75 per cent of their value since closing at Rs 339.90 on June 17.

The company has seen a sharp drop in revenues and cash flows due to the current squeeze in the telecom sector, which has triggered low capital expenditure, lesser spending, muted growth and a falling demand.

While group firm GTL Infrastructure has a higher debt burden of Rs 10,000 crore in its books, it’s a lesser headache for lenders as the debt is a secured one, having an asset cover of one and a half times. But GTL Ltd is a bigger challenge, as the company has close to Rs 4,000 crore leverage, most of which is unsecured.

GTL infrastructure owns the assets and earns rental income and GTL sells the equipment and offers other services to operators. GTL has also made investments in GTL Infrastructure, and holds many of the bank guarantees.

Promoters of 15 companies, including Gujarat Pipavav Port, Tata Coffee and Kingfisher Airlines, have pledged their entire holding with lenders, according to reports. As many as 125 companies have pledged over 75 per cent of their holdings.