MTNL ringtone reverberates

MTNL is currently the top gainer on the BSE; with volumes over 5x, the stock price rose 11% to an intraday high at Rs.26.45, not very far from its 20% UC of Rs.28.60.

The stock rose after the company decided to end its depository agreement with Bank of New York Mellon and delisting of MTNL's American Depository Shares listed on OTCQX, New York, effective 1st Oct’22.

This apart, the Board also gave its nod to increase borrowing from Rs.35,000 crore to Rs.30,000 crore and issue sovereign guarantee bonds of Rs 17,571 crore. This is very much in line with what was approved by the Cabinet to help revive the sagging MTNL.