Lancelot D'Cunha, CEO at ITI Wealth management told CNBC-TV18, "GMR Infrastructure has been trying to raise capital to meet its debt obligations. It is a fairly leveraged balance sheet and that has caused some stress in the past. There was also some intention of sell of some of the road assets to bring down the debt and it is going to take a while, may be couple of years to restructure their entire financials given the large amount of debt that they have. So from a rights perspective even as a rights shareholder if one has to subscribe to the rights, one may not be able to get significant appreciation for may be next two-three years.”
“It may be advisable on a rise to try and cash out of the stock and move to other better companies because this is really going to take a while, so you don’t want to have your capital locked in where it is not growing and move to a company where there is growth and you can also see your share price and portfolio grow. If the stock moves above Rs 24-25 then one should look at exiting the stock," he added.
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