MTNL Shares Gain Almost 6 pc on Bourses - The New Indian Express

MTNL Shares Gain Almost 6 pc on Bourses

Published: 10th January 2014 11:50 AM

Last Updated: 10th January 2014 11:50 AM

Shares of MTNL today gained nearly 6 per cent after the Cabinet yesterday approved refund of about Rs 4,533.97 crore for broadband wireless access (BWA) spectrum surrendered by the state-run telco.

The company's scrip rose by 5.52 per cent to Rs 18.33 on the BSE.

At the NSE, the stock was up 5.74 per cent to Rs 18.40.

BSNL and MTNL did not take part in the 2010 spectrum auction and had been asked to match the price paid by the successful bidder for the airwaves. Both companies offered to surrender their spectrum and sought refunds of payments made.

BSNL had paid Rs 8,313.8 crore, while MTNL paid Rs 4,534 crore, putting a heavy burden on their books.

BSNL is returning part of the spectrum and will get Rs 6,724.51 crore as refund while MTNL, which operates services in Mumbai and Delhi, will receive Rs 4,533.97 crore.

The GoM had also decided that the government would bear the pension burden for about 43,000 MTNL employees absorbed from the Department of Telecom.

After losses widened for nine quarters in a row, MTNL reported that its standalone net loss narrowed to Rs 947 crore in the July-September period, mainly after lowering provisions for retirement benefits.

comments powered by Disqus

Disclaimer: We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the NIE editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.


Read More



follow us Mobile Site iPad News Hunt Android RSS Tumblr Linekin Pinterest Youtube Google Plus Twitter Facebook