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Change in MTNL's fortunes?

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Joydeep GhoshRajesh Bhayani
Last Updated : Jun 23 2014 | 12:02 AM IST
While the PSU index has seen strong profit-booking in the past week, government-owned MTNL has been rising consistently. The market is abuzz with talks that the new government has grand plans of reviving Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL). There are expectations that the ministry of telecom will soon announce a new roadmap for these companies, which will include fresh investments and sale of some of their assets. On Friday, MTNL closed at Rs 36.95, up almost three per cent.

QIP season gains traction…
With the fund-raising season gaining traction, a number of companies such as Ashok Leyland, BGR Energy, Jaypee Associates (and group companies) and Aban Offshore are in the market to raise money through qualified institutional placements. The total amount of these placements is expected to be in excess of Rs 10,000 crore. With valuations improving, companies like Jaypee Power have even released some of their pledged shares. Sources said while talks with investment bankers are already on, some of them are also doing road shows. Market sources say some of these companies had plans to raise money last year but postponed them due to tough market conditions.

… but some find no takers
A leading company, which is planning to raise $300-$400 million through the qualified institutional placement route, is not finding enough takers. Sources said key personnel of the company have been to London and Singapore to attract investor interest in the issue. However, the response has been tepid, at best. The problem, it seems, is an earlier issue by the same company in which investors lost serious money.

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First Published: Jun 22 2014 | 11:26 PM IST

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