MTNL share price jumps 5% in trade today; stock up 25% in one year

MTNL shares spiked 5 per cent in trade today, in past one year, MTNL shares have gained 25 per cent as compared to Sensex's rise of around 8 per cent.

Mahanagar Telephone Nigam (MTNL) share price jumped 4.6 per cent in trade on Thursday, June 12, 2025, logging an intraday high at ₹55.5 per share on BSE. At 12:29 PM, MTNL shares were trading 2.51 per cent higher at ₹54.35 per share on the BSE. In comparison, the BSE Sensex was up 0.39 per cent at 82,197.17. The company's market capitalisation stood at ₹3,424.05 crore. Its 52-week high was at ₹101.88 per share and 52-week low was at ₹37.49 per share.   In the past one year, MTNL shares have gained 25 per cent as compared to Sensex's rise of around 8 per cent. 

Why are MTNL shares in demand today?

The northward movement in the stock came after reports suggested Cabinet would meet today to discuss the transfer of assets of the company. 

 

Further, reports also suggested that Minister of State for Communications Dr CS Pemmasani has said that government remains committed to reviving the ailing state-run telecom operator Mahanagar Telephone Nigam Ltd. However, this Business Standard could not verify these reports.  

 

On Wednesday, Bankers to MTNL ruled out any haircut but said they are open to debt restructuring, including conversion of debt into equity, or monetisation of the telecom operator’s assets. 

 

Bankers said they would seek assurance from the Centre to repay dues and details on MTNL assets, which can be monetised. As a last resort, bankers may demand legal remedies to clear the dues.

 

They had flagged the MTNL matter at their last meeting in May with finance ministry officials and sought immediate resolution of the loan defaults.

 

MTNL assets have already been classified as non-performing assets (NPA), and have provided a 100 per cent provision against it. Public sector banks (PSBs) have an exposure of over ₹8,000 crore to the state-owned telecom firm, with the loans turning into NPAs.

 

The seven PSBs with exposure to MTNL are Union Bank of India (₹3,543 crore), Indian Overseas Bank (₹2,319 crore), Bank of India (₹1,053.8 crore), Punjab National Bank (₹454 crore), State Bank of India (₹337 crore), UCO Bank (₹260 crore), and Punjab & Sind Bank (₹176 crore). MTNL defaulted on these loans last year.

 

The state-run telecom company has defaulted on ₹8,346 crore in loan repayments to multiple banks, as of April 30.