GTL Group shares rally on FCCB restructuring plans

Shares of GTL Group companies – GTL and GTL Infrastructure have soared by more than 13% each after the board of GTL Infrastructure has approved a proposal to restructure its outstanding Foreign Currency Convertible Bonds (FCCBs) and constituted a sub-committee to negotiate and finalise the terms for restructure of FCCBs.

“The board, at its meeting held on July 03, 2012 has considered a proposal to restructure its outstanding FCCBs and have constituted a sub-committee to negotiate and finalise the terms for restructure of FCCBs,” GTL Infrastructure said in a filing.

The company has total outstanding FCCB of $ 228 million, according to annual report. During the financial year 2007-08, the company raised $300 million through zero coupon FCCBs at a conversion price of Rs 53.04 per share for meeting the capital expenditure, acquisition and other expenses permitted by the regulatory authorities.

The decision of the sub-committee shall be subject to approval of Reserve Bank of India, CDR Lenders, shareholders, and such other regulating authorities as may be required, it added.

Among the individual stocks, GTL Infrastructure has zoomed 20% to Rs 9.81 on back of huge volumes. As many as a combined 7.19 million shares have changed hands so far, against an average sub on million shares that were traded daily in past two weeks.

GTL has soared 14% to Rs 38.80; with a combined 5.05 million shares have changed hands on the counter on the NSE and BSE.