MTNL gains on buzz Cabinet OKs spectrum refund
MTNL rose 1.61% to Rs 17.65 at 11:14 IST on BSE on reports the Cabinet approved a refund of about Rs 11260 crore for broadband wireless access spectrum surrendered by state-run MTNL and BSNL.
Meanwhile, the BSE Sensex was up 163.85 points, or 0.79%, to 20,877.22.
On BSE, so far 11.60 lakh shares were traded in the counter, compared with an average volume of 5.98 lakh shares in the past one quarter.
The stock hit a high of Rs 18.33 and a low of Rs 17.43 so far during the day. The stock hit a 52-week high of Rs 28.55 on 15 January 2013. The stock hit a record low of Rs 9.71 on 20 August 2013.
The stock had outperformed the market over the past one month till 9 January 2014, rising 19.79% compared with the Sensex’s 2.87% fall. The scrip had also outperformed the market in past one quarter, rising 15.26% as against Sensex’s 2.29% rise.
The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.
According to media reports, the Union Cabinet on Thursday, 9 January 2014, allowed state-run telecommunications carriers Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam (BSNL) to return their 4G radio spectrum and get refunds of a total Rs 11260 crore.
The government will refund Rs 4534 crore to MTNL and Rs 6724 crore to BSNL in a staggered manner, Information and Broadcasting Minister Manish Tewari told the media on Thursday, 9 January 2014, after a meeting of the cabinet. MTNL and BSNL had received the broadband wireless access (BWA) spectrum in 2010 but have not yet launched the services.
MTNL reported a net loss of Rs 947.05 crore in Q2 September 2013, lower than net loss of Rs 1093.73 crore in Q2 September 2012. Net sales fell 3.5% to Rs 808.44 crore in Q2 September 2013 over Q2 September 2012.
MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25% stake in MTNL