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MTNL gallops on delisting reports

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Capital Market
Last Updated : Jul 03 2015 | 3:13 PM IST

Mahanagar Telephone Nigam jumped 12.35% to Rs 18.65 at 13:38 IST on BSE on reports that the government may delist the telecom services provider ahead of its merger with BSNL.

Meanwhile, the BSE Sensex was up 101.76 points, or 0.36%, to 28,047.56

On BSE, so far 43.25 lakh shares were traded in the counter, compared with an average volume of 2.53 lakh shares in the past one quarter.

The stock hit a high of Rs 19.90 and a low of Rs 16.10 so far during the day. The stock hit a 52-week high of Rs 38.80 on 7 July 2014. The stock hit a 52-week low of Rs 14.60 on 16 June 2015.

The stock had underperformed the market over the past one month till 2 July 2015, rising 0.3% compared with 2.79% rise in the Sensex. The scrip also underperformed the market in past one quarter, falling 11.7% as against Sensex's 1.11% decline.

The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.

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As per reports, the government may delist MTNL ahead of its merger with Bharat Sanchar Nigam (BSNL). The Department of Telecom (DoT) had set a deadline of 31 July 2015 for concluding the merger of state-owned telecom companies MTNL and BSNL in order to increase their competitiveness, reports added.

With respect to reports, MTNL, however, during market hours today, 3 July 2015 clarified that as far as the company is concerned no such proposal has been under consideration of the board/management.

MTNL reported net loss of Rs 595.11 crore in Q4 March 2015 as against net profit of Rs 9600.34 crore in Q4 March 2014. Net sales rose 3.9% to Rs 873.01 crore in Q4 March 2015 over Q4 March 2014.

MTNL offers telecom service in Mumbai and Delhi and BSNL offers telecom services in rest of India. The Government of India (GoI) holds 56.25% stake in MTNL (as per the shareholding pattern as on 31 March 2015). BSNL is an unlisted entity.

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First Published: Jul 03 2015 | 1:35 PM IST

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