MTNL surges over 7% on BSNL merger cut off date

Moneycontrol BureauShares of state-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) surged over 7 percent in trade today over reports that the Department of Telecom (DoT) has set a cut off date for the proposed merger between MTNL and Bharat Sanchar Nigam Ltd (BSNL).

The DoT has set July 31, 2015 as the cut off date for the merger, which is a part of the Telecom Ministry’s plan to revive both the telecom companies.

This development comes on the back of the two companies logging consecutive losses owing to tough competition from private players.

MTNL posted a net profit of Rs 7,825 crore in FY14 after posting a loss of Rs 5,321 crore in the year 2012-13.At 13:38 hrs Mahanagar Telephone Nigam was quoting at Rs 32.10, up Rs 2.10, or 7.00 percent.