MTNL was locked at 10% upper circuit at Rs 15.32 at 13:05 IST on BSE on reports that the company has signed a pact with BSNL for providing pan-India solutions to customers.
Meanwhile, the BSE Sensex was up 47.04 points, or 0.24%, to 19,948
On BSE, 9.34 lakh shares were traded in the counter with pending buy orders of 3.12 lakh shares at upper circuit. The stock's average volume was 6 lakh shares in the past one quarter.
The stock hit a high of Rs 15.32 and a low of Rs 14.10 so far during the day. The stock hit a record low of Rs 9.71 on 20 August 2013. The stock hit a 52-week high of Rs 40.40 on 26 September 2012.
The stock had outperformed the market over the past one month till 23 September 2013, rising 27.33% compared with the Sensex's 7.46% rise. The scrip had, however, underperformed the market in past one quarter, sliding 21.96% as against Sensex's 6% rise.
The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.
As per reports, MTNL has today, 24 September 2013 signed a pact with BSNL for providing pan-India solutions to customers. Under the pact, the two carriers will share assets like buildings, mobile masts and international long-distance phone networks.
BSNL operates mobile, fixed-line and Internet services in 20 of India's 22 telecommunications zones, while MTNL operates in the key Delhi and Mumbai zones. Hit by intense competition from private sector rivals, both carriers have seen their market share eroding, and lost money in the past four fiscal years.
MTNL reported net loss of Rs 1256.19 crore in Q1 June 2013, higher than net loss of Rs 1059.29 crore in Q1 June 2012. Net sales rose 6.3% to Rs 883.16 crore in Q1 June 2013 over Q1 June 2012.
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 June 2013).
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