 "MTNL")
Shares of state owned telecommunications company MTNL surged 13.68 per cent at Rs 61.89 a piece on the BSE in Thursday’s intraday deals. The stock of the company was in high demand despite its default on a semi-annual interest payment of 6.85 per cent for the MTNL Bond Series VI. The interest payment had to be paid 10 days before its due date of December 21, 2024.
“As per the Structured Payment Mechanism of Tri-Partite Agreement (TPA) signed among MTNL, Department of Telecommunications (DoT), Ministry of Communications, Govt. of India and Beacon Trusteeship Limited, MTNL has to fund the Semi-Annual Interest into the ESCROW Account with adequate amount 10 days before the due date,” the company said in an exchange filing on Thursday.
MTNL said that due to insufficient funds the company could not fund the ESCROW Account with the adequate amount.
However, it stated that in case of any defaults, sovereign guarantee will be invoked by the debenture trustee and the Govt of India is obliged to make the payment to MTNL for the interest or the principal amount.
The loss-making telecom company MTNL reported a net loss of Rs 890.3 crore for the second quarter ending September 30, 2023. This compares to a net loss of Rs 773.5 crore in the previous quarter (April-June).
Also Read
 "Stock Market, Market, Crash, Funds, up, Stock, Lost, decline, statistic, Crisis, Capital, BSE, NSE")
 "Stock Market, Market, Crash, Funds, up, Stock, Gain, Lost, decline, statistic, Crisis, Capital, BSE, NSE")
 "Market, BSE, NSE, NIfty, Stock Market, investment")
 "Adani group")
 "solar power, solar energy, green energy, clean energy, renewable energy")
During the second quarter, the company's total revenue declined by 5.3 per cent, reaching Rs 174.2 crore, down from Rs 183.9 crore in the same period last year. At the operating level, the Ebitda loss stood at Rs 119.3 crore for the quarter, compared to a loss of Rs 110.9 crore in the preceding June quarter.
The MTNL stock has outperformed the market in the last six months as it has risen 36 per cent, while gaining 81 per cent in the last one year. In comparison BSE Sensex has risen 6 per cent year to date and 17 per cent in a year.
The company has a total market capitalization of Rs 3,671.01 crore. At 1:34 PM; the shares of the company were trading 7 per cent higher at Rs 58.27 a piece. By comparison, the BSE Sensex was down 0.29 per cent at 81,285.83 level.
 "Stock market")
 "Market, BSE, NSE, NIfty, Stock Market, investment")
 "Is the cash reserve ratio (CRR) a deadweight on banks? Of every Rs 100 raised by banks in deposits, Rs 4.50 is locked up and it earns nothing by way of interest. The CRR framework is in the spotlight because one, a good number of folks now opt to par")
 "IPO")
 "Market, BSE, NSE, NIfty, Stock Market, investment, Loss, Lost")
