MTNL hit an upper circuit limit of 5% at Rs 5.90 on reports that the cabinet today, 23 October 2019, approved revival plan of MTNL and BSNL.
According to media reports, the Department of Telecom (DoT) sent a proposal to the cabinet for a revival plan worth Rs 74,000 crore for the ailing state-run telecom firms - BSNL and MTNL - where Rs 22,000 crore would be in the way of capital infusion for acquiring 4G spectrum, and for a voluntary retirement scheme (VRS), part of the expenditure for which will be borne both companies. DoT move comes following the appointment of a high-level committee to look into the revival of MTNL and BSNL, reports added.
Meanwhile, the S&P BSE Sensex was up 49 points or 0.13% to 39013.2.
On the BSE, 1.68 lakh shares were traded in the counter so far compared with average daily volumes of 3.03 lakh shares in the past two weeks. The stock hit a high of Rs 5.9 and a low of Rs 5.52 so far during the day.
The stock hit a 52-week high of Rs 19.4 on 01 Jan 2019. The stock hit a 52-week low of Rs 4.49 on 23 Aug 2019.
On a consolidated basis, MTNL reported a net loss of Rs 1054.60 crore in Q1 June 2019 over a net loss of Rs 943.88 crore in Q1 June 2019. Net sales fell 15.3% to Rs 433.85 crore in Q1 June 2019 over Q1 June 2018.
State-run MTNL is a telecommunications service provider in the metro cities of Mumbai and New Delhi in India.
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