MTNL share price jumps 18%: Here is why

MTNL shares on Thursday, March 13, jumped as much as 18% during the morning trade after the Parliament was informed that the telecom firm has earned ₹2,134 crore via asset monetisation.

During the intraday trade, shares of the state-owned MTNL were trading at ₹48.68 apiece, surging 12.58% on the National Stock Exchange. Its total market capitalisation stood at ₹3,036.60 crore. The scrip settled at ₹48.20 apiece, jumping 11.47% on the National Stock Exchange.

According to data shared by Minister of State for Communications Pemmasani Chandra Sekhar in Lok Sabha, BSNL has earned ₹2,387.82 crore and MTNL ₹2,134.61 crore up to January 2025 from monetisation of lands and buildings.

"BSNL and MTNL are monetising only those land and building assets which are not required for their own use in the foreseeable future and for which it has the rights to transfer the ownership," Sekhar said in a written reply.

BSNL has earned ₹8,204.18 crore and MTNL ₹258.25 crore from monetisation of close assets comprising tower and fibre up to January 2025, as per the reply.

"Monetisation of assets is being done as per the approved policy of the government, and its impact on the PSUs is being monitored closely," Sekhar said.

According to the Telecom Regulatory Authority of India (Trai), BSNL and MTNL lost 316,599 and 896,988 wireless subscribers.

Private access service providers held 91.92% market share of the wireless subscribers, whereas BSNL and MTNL had a market share of only 8.08%.

In February, BSNL emerged as the biggest loser in the wireline subscribers segment. The company lost 33,306 subscribers. BSNL's sister concern, MTNL, lost 14,054 subscribers.

Shares of MTNL have gained 14.62% over the last five trading sessions. Over a year period, the stock has soared over 48%.

However, year-to-date, the scrip has lost 5.22% and almost 18% in the last six-month period, from September 13, 2024.

MTNL had touched its 52-week high of ₹101.93 on July 29, 2024. Its 52-week low was attained on March 20, 2024, at ₹31.20.