MTNL jumps as govt plans reforms

The stock has jumped 18% in trades so far

Mahanagar Telephone Nigam Ltd (MTNL) is trading higher by 18% at Rs 15.12 on reports that the group of ministers (GoM) would would be meeting today to look into affairs of Bharat Sanchar Nigam Ltd (BSNL) and MTNL. The GoM is likely expected to consider structural reforms of the two telcos.

Excess human resource, surrendering of BWA spectrum and writing off the losses on books will be key agendas of the meeting.

Government may prescribe a long-term revival plan to ward off the financial stress on both the state run companies which have been facing financial stress since a long time now.

Meanwhile, the American Depository Receipt (ADR) of MTNL jumped 12.12% to end at $0.37 on the New York Stock Exchange (NYSE) in trades yesterday.

The stock opened at Rs 12.95 and so far in the intra-day deals it has touched the high of Rs 15.30. Trading volumes on the counter have surged ove five times as 2.6 million shares have changed hands compared to its two-week average 5,79,000 shares.