Mtnl stock price: On February 10, the shares of the debt -ridden government telecom company Metropolitan Telephone Nigam Limited showed up to 10 percent a day. A report by CNBC Awaaz states that the Union Cabinet has approved a financial package of about ₹ 6000 crore for Bharat Sanchar Nigam Limited (BSNL) and MTNL. This package is to accelerate the 4G network expansion of both companies. This funding is expected to help both government telecom companies to strengthen and expand their network infrastructure.
This news increased the purchase in MTNL shares and the price on BSE went up to Rs 57.56. The company’s market cap has been increased to Rs 3400 crore. According to the report, funds worth ₹ 6000 crore will be used to increase 4G network coverage of BSNL and MTNL across the country. Under the scheme, about one lakh 4G site will be set up to improve connectivity and ensure better network services for consumers.
The report also stated that an additional ₹ 6000 crore will be required to fully implement the expansion. The government has already provided financial assistance of ₹ 3.22 lakh crore to BSNL and MTNL through 3 different revival packages.
Share was up 17 percent on February 5
Earlier on 5 February 2025, MTNL shares saw a rise of 17.6 percent. The stock rose due to optimism for the company’s asset monetization plan for FY 2026. Also, one of the reasons was that Finance Minister Nirmala Sitharaman announced a new scheme to provide broadband connectivity to selected government schools and health centers in the speech of Union Budget 2025.
According to BSE data, MTNL’s stock has strengthened 21 percent in the last one week. The stock has seen a rise of 144 percent in 2 years. By the end of December 2024, the government had 56.25 percent stake in the company.
How much loan on MTNL
Loan accounts of MTNL, buried under heavy debt burden, were classified as NPA by most public sector banks in October last year. MTNL has a loan of Rs 31,944.51 crore on MTNL. During the discussion with the CNBC-TV18 on the announcements of Budget 2025, the Department of Discrimples and Public Asset Management (DIPAM), Arunish Chawla, confirmed the government’s commitment to help MTNL and BSNL in monetization of their assets.
Disclaimer: Here information provided is being given only for information. It is necessary to mention here that the investment market in the market is subject to risks. Always consult experts before investing money as an investor. There is never advice to anyone to invest money on behalf of Moneycontrol.