Shares of GTL Infrastructure locked at 20 percent lower circuit on Friday, hitting 52-week low of Rs 3.11, as it informed the BSE its operations will be hit by client Aircel's bankruptcy.
"On March 1, Aircel filed for bankruptcy before the National Company Law Tribunal (NCLT) with an intent to undertake a resolution plan. At this stage, it remains unclear whether any restructuring or revival would be possible and the outcome of the insolvency proceedings remains to be seen," company said in BSE filing.
If no revival is possible and Aircel becomes insolvent, the company would lose all 23,727 of Aircel's tenancies.
The tenancy is the infrastructure given on lease/ rent to telecom service providers (TSPs) for providing cellular telephone services.
The total tenancies could fall to 26,639 as on March 31, 2018 from 51,587 as of December 31, 2017.
If Aircel were to become insolvent and consequently terminate contractual arrangements for all tenancies, GTL's dues recoverable from Aircel would be Rs 12,791 crore.
"Given that Aircel contributed 43 percent of the revenues of the company as on March 2017, the impact of this insolvency will be materially adverse for the company," it added.
GTL has lowered its revenue estimate for FY18 by 12 percent to Rs 2,267 crore versus earlier estimate of Rs 2,600 crore, and earnings before interest, tax, depreciation and amortisation (EBITDA) by 27.5 percent to Rs 978 crore from Rs 1,350 crore.
Aircel has overdue outstanding towards infrastructure provisioning fees and past settlements of over Rs 384 crore. Also, the company had raised a claim of around Rs 1,200 crore for the six circles sought to be terminated unlawfully by Aircel.
The company had initiated proceedings before the Delhi High Court which then ordered restraining Aircel from disposing off its assets.
At 10:02 hrs GTL Infrastructure was quoting at Rs 3.11, down Rs 0.77, or 19.85 percent.
There were pending sell orders of 1,853,395 shares, with no buyers available.Posted by Rakesh Patil