MTNL Shares Soars by 13.72% to ₹49.29 on March 13, 2025

On Thursday, March 13, 2025, the share price of state-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) saw a significant increase, popping as much as 13.72 per cent to reach an intraday high of ₹49.29 per share. This surge in MTNL's share price occurred during the trading session.

Reason for the Uptick: Asset Monetisation by MTNL and BSNL

The primary reason for this increase in MTNL's share price was the revelation in Parliament on Wednesday that MTNL, along with Bharat Sanchar Nigam Limited (BSNL), has generated ₹ 12,984.86 crore from the monetisation of land, buildings, towers, and fibre since 2019.

Details of Asset Monetisation Earnings

Minister of State for Communications Pemmasani Chandra Sekhar provided data to the Lok Sabha indicating the breakdown of these earnings up to January 2025 . MTNL earned ₹2,134.61 crore from the sale of land and buildings, while BSNL earned Rs 2,387.82 crore from the same category. Additionally, BSNL generated ₹8,204.18 crore, and MTNL ₹258.25 crore, from the sale of assets related to towers and fibre.

Government Policy and Impact Monitoring

Minister Sekhar clarified that both MTNL and BSNL are only monetising land and building assets that are not required for their future operations and for which they possess the rights to transfer ownership. He also added that the asset monetisation is being conducted in accordance with the government's approved policy, and the impact on these Public Sector Undertakings (PSUs) is being closely monitored.

Background Information on MTNL

Mahanagar Telephone Nigam Limited (MTNL) was established by the Government of India in April 1986 with the main goal of improving telecommunication services, expanding network coverage, and providing affordable telecom services in the metro cities of Delhi and Mumbai. MTNL focused on building high-quality infrastructure and has expanded its services over time to include fixed-line and mobile services in these cities, becoming a significant player in the Indian telecom sector. MTNL became a wholly-owned subsidiary of Bharat Sanchar Nigam Limited (BSNL).

MTNL's Achievements and Global Presence

MTNL achieved Navratna status in 1997 due to its strong financial and operational performance. Besides serving Delhi and Mumbai, MTNL has also expanded its operations internationally, with a subsidiary named Mahanagar Telephone Mauritius Limited (MTML) operating in Mauritius, and a joint venture called United Telecom Limited (UTL) in Nepal. MTNL has also been testing its 5G network, demonstrating its commitment to technological advancement.

Market Position of MTNL

According to BSE data, the market capitalisation of MTNL is ₹3,065 crore, and it falls under the BSE SmallCap category. On March 13, 2025, MTNL shares were trading 12.30 per cent higher at ₹48.67, while the BSE Sensex was trading 0.11 per cent higher at 74,109.20 in comparison.

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