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MTNL shares surge 5 per cent; hit upper circuit on revival plan announcement

MTNL's scrip jumped 4.92 per cent to Rs 6.19 -- its upper circuit limit on the BSE. On the NSE, it rose 4.27 per cent to its highest trading permissible limit for the day at Rs 6.10.

Published: 24th October 2019 12:33 PM  |   Last Updated: 24th October 2019 12:33 PM   |  A+A-

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Bombay Stock Exchange. (File Photo | Reuters)

By PTI

NEW DELHI: Shares of MTNL gained 5 per cent to its highest trading permissible limit for the day after the announcement of a Rs 69,000-crore revival package for the company and BSNL, that includes merging the two loss-making firms.

MTNL's scrip jumped 4.92 per cent to Rs 6.19 -- its upper circuit limit on the BSE. On the NSE, it rose 4.27 per cent to its highest trading permissible limit for the day at Rs 6.10.

ALSO READ: BSNL, MTNL to be merged, Cabinet approves four-way revival plan

The government on Wednesday approved a Rs 69,000-crore revival package for BSNL and MTNL that includes merging the two loss-making firms, monetising their assets and giving voluntary retirement scheme (VRS) to employees so that the combined entity turns profitable in two years.

ALSO READ: Days after strike threat from employee unions, BSNL, MTNL promise staff salaries before Diwali

The cabinet approved a plan to combine Mahanagar Telephone Nigam Ltd - which provides services in Mumbai and New Delhi - with Bharat Sanchar Nigam Ltd that services the rest of the nation, Telecom Minister Ravi Shankar Prasad said.

MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in loss since 2010.



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