MTNL shares hit upper circuit on Rs 69,000 crore revival plan

Shares of Mahanagar Telephone Nigam (MTNL) hit the upper circuit limit on Thursday after the government on Wednesday approved a Rs 69,000 crore revival package for BSNL and MTNL, including a proposal to merge the two loss-making firms, monetise assets and give VRS to employees to turn the combined entity profitable in two years.

The scrip jumped 4.92 per cent to Rs 6.19 in the morning trade, while BSE benchmark Sensex rose 142.73 points, or 0.37 per cent, at 39,201. BSNL is not listed on the bourses.

The package approved includes infusion of Rs 20,140 crore capital for purchase of 4G spectrum, Rs 3,674 crore for GST to be paid on spectrum allocation, companies raising Rs 15,000 crore in debt on sovereign guarantee, government funding of Rs 17,160 crore for a voluntary retirement scheme (VRS) and another Rs 12,768 crore towards retirement liability.