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.

From Around the Web