MTNL jumped 6.1% to Rs 14.78 at 09:25 IST on BSE on reports that the company is likely to sign a pact with BSNL today, 24 September 2013 that would allow the state-run companies to utilise each others network for providing pan-India mobile services.
Meanwhile, the BSE Sensex was down 71.38 points, or 0.36%, to 19,829.58
On BSE, 1.29 lakh shares were traded in the counter compared with average volume of 6 lakh shares in the past one quarter.
The stock hit a high of Rs 14.86 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 is likely to sign a pact with another state-run unlisted telecom services provider BSNL today, 24 September 2013 that would allow the state-run companies to utilise each others network for providing pan-India mobile services.
The two telecom PSUs are not able to provide services throughout the country on competitive basis due to geographical restrictions as per licence conditions, while their privately-run rivals are providing pan-India services.
MTNL provides services in Delhi and Mumbai while the rest of the country is covered by BSNL. As per the agreement, MTNL would avail the network of BSNL only for national roaming service for its subscribers except in Delhi and Mumbai. In the same way, BSNL will only use MTNL network for roaming services to its customers in Delhi and Mumbai. MTNL would offer all its NLD (national long distance) traffic to BSNL except for the traffic between Delhi and Mumbai, reports added.
Reports further informed that there will be greater synergy between the two organisations on operational issues, commercial issues, customer delivery, IT integration, infrastructure sharing and business promotion. Both the firms will sign the pact on mutually-agreed conditions for revenue sharing.
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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