Mahanagar Telephone Nigam rose 6.89% to Rs 22.50 at 14:50 IST on BSE after the company clarified that it is considering assets monetization to reduce debt.
The clarification was issued during trading hours today, 9 June 2017.Meanwhile, the S&P BSE Sensex was down 5.07 points, or 0.02% to 31,208.29.
On the BSE, 22.70 lakh shares were traded in the counter so far, compared with average daily volumes of 7.27 lakh shares in the past one quarter. The stock had hit a high of Rs 23.20 and a low of Rs 21.10 so far during the day. The stock hit a 52-week high of Rs 27.50 on 25 April 2017. The stock hit a 52-week low of Rs 15 on 22 November 2016.
The stock had underperformed the market over the past one month till 8 June 2017, falling 15.80% compared with 3.19% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 13.55% as against Sensex's 7.83% rise. The scrip had also underperformed the market in past one year, rising 4.47% as against Sensex's 16.63% rise.
The small-cap company has equity capital of Rs 630 crore. Face value per share is Rs 10.
Mahanagar Telephone Nigam (MTNL) clarified on media report regarding raising of Rs 4000 crore and a potential sale of Delhi, Mumbai properties.
MTNL said that in order to revive the company and come out of the debt, the management of MTNL is considering the proposal for assets monetisation through lease/sale of real estate/buildings, lease/sale of towers, ducts, etc.
The proceeds of assets monetization can be utilised for debt reduction. For this, the company has requested the Department of Telecommunications (DoT) to grant necessary approval. As and when any such approval comes from DoT, the company will inform the stock exchanges accordingly.
MTNL reported net loss of Rs 634.80 crore in Q4 March 2017 as against net profit of Rs 188.63 crore in Q4 March 2016. Net sales declined 13.31% to Rs 705.17 crore in Q4 March 2017 over Q4 March 2016.
State-run MTNL provides telecommunication services. The Government of India currently holds 56.25% stake in MTNL (as per the shareholding pattern as on 31 March 2017).
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