MTNL seeks asset monetisation route for debt reduction

Mahanagar Telephone Nigam Ltd (MTNL) surged as much as 6.7% at Rs 26.10, hitting a high of Rs 27.15 in intra-day trade. The company yesterday 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 such plan comes up from DoT.


Currently, MTNL remains in the limelight as the company is said to have approached the government and has proposed to monetise assets for debt reduction. The company is planning to monetise surplus land for payment of debt. The MTNL surplus realty is worth Rs 5000 crore which can be used for monetisation.

The company’s current consolidated borrowings stand very high at Rs 17933 crore whereas its net worth is a negative Rs 4.56 crore. The company holds no interest coverage too. Hence, debt reduction would provide some relief to the company.

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