GTL Infra shares tank 20% on Aircel insolvency woes
New Delhi: Shares of GTL Infrastructure Ltd slumped as much as 20% in morning trade on Friday after it said the impact of Aircel’s insolvency will be materially adverse for the company.
GTL Infra shares plunged 19.85% to a low of Rs3.11 on the BSE. On the NSE, the stock fell 19.21% to touch its 52-week low of Rs3.15. The stock has fallen by 57% since the start of this year.
On 1 March, Aircel surprisingly and unexpectedly filed for bankruptcy before the National Company Law Tribunal (NCLT), Mumbai with an intent to undertake a resolution plan.
“Given that Aircel contributed 43% of the revenues of the company as on March 2017, the impact of Aircel’s insolvency will be materially adverse for the Company,” GTL Infra said in a regulatory filing.
Aircel has overdue outstandings towards infrastructure provisioning fees and past settlements of over Rs384 crore, the filing said.
“In the event no revival is possible and Aircel becomes insolvent, the company would lose all 23,727 of Aircel’s tenancies. As a result thereof, the company’s tenancies will likely to close at 26,639 as on March 31, 2018 as against 51,587 tenancies as of December 31, 2017,” the filing added.