MTNL advances after getting compensation for surrendering spectrum

Mahanagar Telephone Nigam rose 3.17% to Rs 17.90 at 14:12 IST on BSE after the government approved compensation of Rs 458.04 crore to the company for surrendering spectrum.

Meanwhile, the BSE Sensex was up 110.28 points, or 0.44%, to 25,436.26

On BSE, so far 5.61 lakh shares were traded in the counter, compared with an average volume of 3.98 lakh shares in the past one quarter. The stock hit a high of Rs 18.30 and a low of Rs 17.30 so far during the day. The stock hit a 52-week high of Rs 24.50 on 3 December 2015. The stock hit a 52-week low of Rs 14.45 on 25 August 2015. The stock had underperformed the market over the past one month till 30 March 2016, rising 2.97% compared with 10.16% rise in the Sensex. The scrip also underperformed the market in past one quarter, sliding 20.96% as against Sensex's 2.39% decline.

The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.

Mahanagar Telephone Nigam (MTNL) during market hours today, 31 March 2016 said that Government had approved compensation of Rs 458.04 crore to the company for surrendering 800 MHz CDMA spectrum out of which Rs 428.95 crore has been sanctioned for disbursal vide DOT letter dated 28 March 2016 and the amount has been received by the company in its account on 30 March 2016.

MTNL reported net loss of Rs 704.93 crore in Q3 December 2015, lower than net loss of Rs 730.83 crore in Q3 December 2014. Net sales fell 5.8% to Rs 766.98 crore in Q3 December 2015 over Q3 December 2014.

MTNL offers telecom service in Mumbai and Delhi and BSNL offers telecom services in rest of India. The Government of India (GoI) holds 55.45% stake in MTNL (as per the shareholding pattern as on 31 December 2015).

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