GTL Infrastructure hit a lower circuit limit of 5% at Rs 2.06 on profit selling after recent steep surge.
Shares of GTL Infrastructure soared 50% in the past 10 trading sessions.On a year-to-date (YTD) basis, the stock has surged 198.55% while the benchmark Sensex has added 22.50% during the same period.
On the technical front, the stock's RSI (relative strength index) stood at 51.78. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 1.964, 1.759 and 1.642, respectively.
GTL Infrastructure reported net loss of Rs 207.02 crore in Q2 September 2021 as against net loss of Rs 171.95 crore in Q2 September 2020. Net sales rose 5.24% to Rs 363.79 crore in Q2 September 2021 over Q2 September 2020.
GTL Infrastructure offers telecom towers that are shared by all the telecom operators in India. It enables the telecom networks through its 28,000 telecom towers located across all the 22 telecom circles.
The company informed the exchanges on 15 December 2021 that it initiated certain litigation proceedings to procure the assignment of the balance debt to Edelweiss Asset Reconstruction Company (EARC), and cause EARC to restructure the debt to be sustainable levels. The matters were pending before the Supreme Court of India, which had issued a status quo on 6 March 2020.
In this regard the Apex Court has passed an order on 6 December 2021 (which was uploaded on 14 December 2021) dismissing all the proceedings filed by the company. The Supreme Court upheld the decision of the Bombay High Court stating that each bank / financial institution must make its own assessment of the value offered by SC/RC for the financial assets and decide whether to accept or reject the offer. Consequently, the status quo order was also vacated.
The company said it will now wait for directions from the lenders on the way forward, which may include pursuing of the proceedings before the National Company Law Tribunal under Insolvency and Bankruptcy Code, 2016.
In the meantime, GTL said it will endeavour to continue its operations in the ordinary course. The company shall continue to provide updates as and when any material development takes place, it said.
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