You are on page 1of 3

A Literature Review of COMPREHENSIVE PROJECT REPORT - 2 ON A project management approach to Mergers & Acquisitions in Indian Companies

Submitted to Mrs. Reshma Sable

SUBMITTED BY: Sunil Ramchandani (10MBA086) Course:-Managerial Effectiveness Sem-4

FACULTY OF MANAGEMENT STUDIES INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (IIM) CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT) AT & PO CHANGA- 388421: TA- PETLAD, DIST- ANAND, GUJARAT, INDIA. April 2012

Literature Review-1
(Taken from the EBSCO, http://web.ebscohost.com/ehost/detail?vid=3&hid=10&sid=b9088127-bde9464e-8d71-25514e13f1be %40sessionmgr12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d %3d#db=n5h&AN=2W63862173126) June 21--NEW DELHI -- Shares in GTL group companies tanked early today on speculations of pledged shares, bank debt and margin funding issues pulling stocks lower while the broader index slipped nearly 3 per cent in the trade today. According to management, company's pledged shares have not been sold, its business as usual for the company and fundamentals of the company remain strong. Chairman Manoj Tirodkar in an interview with ET Now, said the Mauritius tax treaty is not a matter of concern at this point and the question of Technology Infrastructure, the Mauritius company that holds an 11 percent stake in GTL, did not sell stake. Institutions hold 16.5 percent stake in GTL and 3.3 percent in GTL Infra. In addition, Tirodkar says telecom is a challenging business and

after acquisition of Aircel which we have executed well challenges will remain, which I do not believe that is something investors will react too. Management clarified there is no default on FCCB conversion which is due on November 2012 and the company is adequately funded if required to top up margins. GTL will consider approaching SEBI regarding sharp fall in shares, adds Manoj Tirodkar, CMD, GTL. "No other country charges tax from foreigners but if India chooses to do it after one year or whenever it gets implemented then they would be shooting themselves in the foot one more time but either way nothing that is happening today, tomorrow or in 2011 for sure

and even little bit beyond that", says Samir Arora, Fund Manager, Helios Capital Management in an interview with ET Now. At 12:54 PM, Shares in GTL were trading nearly 59 pct lower on BSE at Rs 142.05 with volumes of near 10 million shares while shares in GTL Infra were trading 37 per cent lower at Rs 18.70 with surging volume of 23 million shares on BSE. GTL stock is undervalued and hence a good opportunity to buyback shares, says Tirodkar. Last week there were reports that the GTL Infrastructure, which was seeking to raise about $300 million from institutional investors, has scrapped its fund raising plans due to adverse market conditions. GTL was down 15 percent on Friday also. GTL is holding 37 percent stake in GTL Infra. There are concerns in the market that India may renegotiate its tax avoidance treaty with Mauritius, which could lead to lesser incentives to invest in the country via the route. On a broader perspective, a large proportion foreign investment in the stock market comes through companies registered in Mauritius and are exempted from tax in India under a Double Taxation Avoidance Agreement.