Mtnl stock price: The shares of the debt -ridden government telecom company Mahanagar Telephone Nigam Limited showed a bumper up by 20 percent a day on February 5. The stock hit an upper price band on BSE at Rs 57.16 but did not get the circuit. The company’s market cap has been Rs 3,500 crore. The stock rose due to optimism for the company’s asset monetization plan for FY 2026. Also, one of the reasons is that Finance Minister Nirmala Sitharaman announced a new scheme to provide broadband connectivity to select government schools and health centers in the speech of Union Budget 2025.
After this, rally was seen in all telecom shares. The BSE telecom index rose 1.4 percent to 2,806. This was the second consecutive day of MTNL shares. A day earlier on 4 February, the stock saw a jump of 6 percent on BSE. The stock has strengthened 25 percent in the last one week.
Government committed to help in asset monetization
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 to monitor their assets. With the help of asset monetization, value can be unlocked, liabilities can be eliminated and the sector can be revived.
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How much loan on MTNL
Loan accounts of MTNL, buried under heavy debt burden, were classified as NPAs by most public sector banks in October last year. MTNL has a loan of Rs 31,944.51 crore on MTNL. By the end of December 2024, the government had 56.25 percent stake in the company.
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