MTNL jumps on buzz of possible merger with BSNL

Mahanagar Telephone Nigam jumped 7.49% to Rs 28.70 at 14:48 IST on BSE on media buzz that the government is studying possible merger of BSNL and MTNL.

Meanwhile, the S&P BSE Sensex was down 18.01 points or 0.06% at 28,426.

The stock surged on heavy volumes. On BSE, so far 22.78 lakh shares were traded in the counter as against average daily volume of 8.25 lakh shares in the past one quarter.

The stock hit a high of Rs 29.90 and a low of Rs 26.75 so far during the day. The stock had hit a 52-week high of Rs 39.10 on 25 June 2014. The stock had hit a 52-week low of Rs 13 on 23 December 2013.

The stock had underperformed the market over the past one month till 2 December 2014, sliding 10.25% compared with the Sensex's 2.07% rise. The scrip had also underperformed the market in past one quarter, declining 11.15% as against Sensex's 5.27% rise.

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

Mahanagar Telephone Nigam (MTNL) reported a net loss of Rs 834.22 crore in Q2 September 2014, lower than net loss of Rs 947.05 crore in Q2 September 2013. Net sales rose 4.6% to Rs 845.26 crore in Q2 September 2014 over Q2 September 2013.

MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25% stake in MTNL (as per the shareholding pattern as on 30 September 2014).

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