Moneycontrol
Last Updated : Jul 03, 2015 05:09 PM IST | Source: Moneycontrol.com

MTNL surges 20%; to delist before BSNL merger says CMD

Earlier in March, Minister of Communications and IT Ravi Shankar Prasad had said BSNL and MTNL's debt stood at Rs 4,459 crore and Rs 14,120 crore respectively. Prasad also said the number of subscribers of the state-run telecom companies declined from 2012 to 2014.


Shares of MTNL surged 20 percent intraday on Friday as merger plans with BSNL firm up. Anupam Shrivastava, CMD of the state-run telecom company has said that MTNL will be delisted before the merger.


He stated that the government is working out to iron out three merger issue including MTNL's debt position and HR issues. The government has set a cut off date of 31 July for the merger.


However, MTNL has said that there is no delisting proposal that is under consideration of the board.


Earlier in March, Minister of Communications and IT Ravi Shankar Prasad had said BSNL and MTNL's debt stood at Rs 4,459 crore and Rs 14,120 crore respectively. Prasad also said the number of subscribers of the state-run telecom companies declined from 2012 to 2014.


MTNL today reported a standalone net loss of Rs. 595.11 crore for the quarter ended March 31, due to sharp rise in expenditure. For the entire 2014-15 fiscal, MTNL posted a net loss of Rs. 2,893.39 crore. In the previous year, the company had clocked a net profit of Rs. 7,825.13 in the previous year.


MTNL runs telecom services in Delhi and Mumbai while BSNL offers telecom coverage in the rest of India.

At 13:03 hrs Mahanagar Telephone Nigam was quoting at Rs 18.20, up Rs 1.60, or 9.64 percent.

First Published on Jul 3, 2015 01:19 pm
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