Shares of Mahanagar Telephone Nigam Limited (MTNL) surged 9 percent to Rs 57.50 in morning trade on February 10, following reports that the Union Cabinet has approved a Rs 6,000 crore financial package to fast-track the 4G network expansion of Bharat Sanchar Nigam Limited (BSNL) and its subsidiary, MTNL.
The funding aims to strengthen and expand the network infrastructure of both state-run telecom firms. MTNL’s stock has now gained 13 percent over three sessions and is up 23 percent in the past month.
Stay tuned to our LIVE blog for real-time market updates
As part of the plan, nearly one lakh 4G sites will be installed to improve connectivity and enhance network services for consumers. However, the full rollout is expected to require an additional Rs 6,000 crore in funding.
The government has already committed Rs 3.22 lakh crore to BSNL and MTNL through three revival packages since 2019, including support for 4G deployment. Thanks to these measures, BSNL-MTNL turned operationally profitable in FY21.
BSNL, which oversees MTNL’s operations in Delhi and Mumbai, has struggled to retain customers due to its limited 4G reach.
At about 11:30 pm, MTNL shares were trading at Rs 54.50, higher by 4.2 percent from the last close on the NSE. Despite the overall volatility, MTNL shares have rallied a massive 23 percent since the start of the year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
