Mahanagar Telephone Nigam (MTNL) surged as much as 6.7% at Rs 26.1 hitting a high of Rs 27.15 in intraday trade. The company on Tuesday clarified on the news about its discussion with BSNL on merger plan. The company refused any such discussion being tabled with BSNL and will inform in case any discussion is set to come from DoT.
Currently, MTNL remains in the limelight as the company is said to have approached Government and has proposed to monetise assets for debt reduction. Company is planning to monetise surplus land for payment of debt. The realty amount accounts to Rs 5000 crore which can be used for monetisation.
Company’s current consolidated borrowings stand very high at Rs 17933 crore whereas, networth is negative with Rs 4.56 crore. Company holds no interest coverage too. Hence, debt reduction would pose some relief to the company.