Mahanagar Telephone Nigam Limited (MTNL) shares gained as much as 9 per cent in Monday’s trade on BSE, recording an intraday high at Rs 55.36 per share. The buying interest in the stock came after sources told CNBC TV18 that MTNL will not be allowed to shut shop, and an option to take it to the National Company Law Tribunal (NCLT) has also been ruled out.
At around 1:16 PM, MTNL’s share price was up 6.72 per cent at Rs 54.35 per share. In comparison, the BSE Sensex was up 0.65 per cent at 81,911.78 at around the same time. The market capitalisation of the company stood at Rs 3,413.34 crore at around the same time.
Further, a committee of secretaries has been formed to build a plan for the revival of MTNL. Fund infusion of nearly Rs 8,000 crore may be needed in the long term for MTNL to survive.
The cash strapped telecom company has defaulted on the installment and interest payment to many banks. As per its October 8 filing, on the installment front, MTNL owes Rs 87.09 crore to Bank of Baroda, Rs 52.50 crore to Punjab and Sindh Bank, Rs 109.37 crore to Punjab National Bank, Rs 313.90 crore to State Bank of India (SBI), Rs 37.5 crore to UCO Bank, and Rs 337.81 crore to Union Bank of India.
The total indebtedness of MTNL stands at Rs 32046.88 crore (Bank Loan of Rs 7975.89 crore and Sovereign Guaranteed Bonds of Rs 24070.99 crore).
In the past one year, MTNL shares have gained 82 per cent against Sensex’s rise of 23 per cent.
First Published: Oct 14 2024 | 2:06 PM IST
