MTNL rose 6.92% to Rs 9.11 at 12:29 IST on BSE on reports the government is considering a Rs 74,000-crore bailout plan to rescue ailing state-owned telecom companies BSNL and MTNL.
Meanwhile, S&P BSE Sensex was up 35.90 points or 0.09% at 39,852.38.
On BSE, 3.5 lakh shares were traded in MTNL counter, compared to a 2-week average of 2.9 lakh shares. The share price hit an intraday high of Rs 9.37 and an intraday low of Rs 8.89. It hit a 52-week high of Rs 19.40 on 1 January 2019 and a 52-week low of Rs 7.25 on 20 June 2019.
According to media reports, the bailout plan may involve offering a handsome exit package to thousands of employees, including an additional 5% compensation (ex-gratia) to make the VRS attractive, while providing for 4G spectrum and capital expenditure.
MTNL reported a net loss of Rs 755.51 crore in Q4 March 2019 compared to a net loss of Rs 900.20 crore in Q4 March 2018. Net sales surged 9% to Rs 536.84 crore in Q4 March 2019 over Q4 March 2018.
MTNL provides fixed-line telecommunication service in Delhi and Mumbai.
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