MTNL Shares Skyrocket After Government's Monetization Update

Shares of MTNL surged over 12% after the government disclosed earnings of Rs 2,134.61 crore from monetization of lands and buildings till January 2025. The state-owned telecom company saw substantial movement on both BSE and NSE as trading volume soared. These earnings are part of broader asset monetization efforts by telecommunication firms.

Shares of the state-owned telecom firm MTNL experienced a significant surge on Thursday, climbing over 12% after a government announcement boosted investor confidence. The firm reported earnings of Rs 2,134.61 crore from monetizing lands and buildings till January 2025, a move aimed at strengthening the financial footing of the beleaguered enterprise.

On the BSE, MTNL's stock closed at Rs 48.78, marking a 12.55% increase, while on the NSE, it settled at Rs 48.20 after rising by 11.47%. Intraday trading saw the stock reach highs of Rs 51.30 on the BSE and Rs 51.18 on the NSE. This activity occurred despite a broader market downturn, where BSE Sensex and NSE Nifty both registered declines.

The announcement comes amid ongoing efforts by the government to monetize non-core assets of public sector undertakings like BSNL and MTNL. According to Pemmasani Chandra Sekhar, Minister of State for Communications, the firms follow a government-sanctioned policy for asset monetization, ensuring their future financial stability opens new prospects for investor confidence.

(With inputs from agencies.)