This telecom PSU stock hits 20% upper circuit on reports of ₹16,000 crore asset monetisation plan

MTNL shares jumped as much as 19.99% to hit the upper circuit limit of ₹57.21 apiece on the NSE on Wednesday after rallying 6.9% in the previous session as well. The stock is now up over 25% in the past five days and 13% in the past one year.

According to a media report, the Centre has initiated plans to monetise MTNL’s non-core properties worth ₹16,000 crore, with a group of ministers (GoM) also waiving off various charges and fees on these properties.

The report quoted Arunish Chawla, secretary of the Department of Disinvestment and Public Asset Management (DIPAM), while he was discussing the Union Budget 2025.

Chawla reiterated the central government’s commitment to helping MTNL and Bharat Sanchar Nigam Ltd (BSNL) monetize their assets to unlock value, clear liabilities, and revitalize the sector.

“We are going to help MTNL and BSNL in monetising whatever assets they have so that the value that is locked in can be redeployed, liabilities are cleared and we can re-energize the sector,” he was quoted as saying.

Separately, Finance Minister Nirmala Sitharaman in her eighth budget speech on February 1 announced a new scheme to provide broadband connectivity to all government secondary schools and health centres.

“Broadband connectivity will be added to all government secondary schools and primary healthcare centres in rural areas under the Bharat Net project,” she said.

Analysts believe that the project would create new business for state-run telecom companies like MTNL and BSNL, while boosting their earnings in the coming financial year.