The shares of this leading telecom services provider surged by approximately 5 percent after the finance ministry delivered some positive news in its favour. In this article, we will discuss more about this announcement.
With a market capitalization of Rs 3,030 crores, the shares of Mahanagar Telephone Nigam Ltd (MTNL) are currently trading at Rs 48.1 per share, down by 53 percent from its 52-week high of Rs 101.93 per share. Over the past five years, the stock has delivered an impressive return of 584 percent.
About the announcement
Mahanagar Telephone Nigam Ltd. (MTNL) is under increasing financial strain, prompting the Finance Ministry of India to ask for a specific timetable for monetisation of its surplus assets.
The Telecom Ministry has asked for more capital to address MTNL’s accumulating liabilities. According to sources, the government has identified around 50 non-core assets for both BSNL and MTNL, primarily land and buildings in Mumbai and Delhi, to consider for monetisation.
MTNL is expected to submit its plan, including asset valuations, in the first half of this fiscal year. While BSNL’s total surplus assets are estimated at Rs 50,000 crore, part of it is subject to monetisation rather than all of it. The National Land Monetisation Corporation is assisting the monetisation efforts, and valuation and land clearing exercises have already been initiated.
However, BSNL has already taken charge of the MTNL business and is expected to reduce its woes. As of today, MTNL’s debt stands at Rs 33,568 crore, comprising Rs 24,071 crore in sovereign guarantee bonds, Rs 8,415 crore in outstanding dues to lenders, and Rs 1,151 crore in a DoT loan for bond interest servicing.
MTNL reported a consolidated revenue of Rs 698 crores in FY25, marking a decrease of 12.64 percent from Rs 799 crores in FY24. The company posted a net loss of Rs 3,328 crores in FY25 as compared to a loss of Rs 3,268 crores in FY24.
Mahanagar Telephone Nigam Limited (MTNL) provides telecom services in India and Mauritius through its Basic & Other Services and Cellular Services segments. It offers mobile, voice, internet, and international long-distance services. Additionally, MTNL provides cloud and managed services, ICT solutions, Wi-Fi, web hosting, infrastructure sharing, and emergency communication services, along with operating data centers and running skill development programs.
Written by Satyajeet Mukherjee
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