MTNL shares soared nearly nearly 9 per cent on Thursday after the state-run telecom firm said it will submit its revival plan to the Department of Telecommunications (DoT) by August
MTNL shares soared nearly nearly 9 per cent on Thursday after the state-run telecom firm said it will submit its revival plan to the Department of Telecommunications (DoT) by August this year which aims to bring the loss making public sector undertaking (PSU) out of the red.
At 1.07 pm, shares of Mahanagar Telephone Nigam Ltd were trading 7.21 per cent up at Rs 22.30. The scrip opened at Rs 21.30 and has touched a high and low of Rs 22.65 and Rs 21.30, respectively, in trade so far.
Later, the scrip closed 4.81 per cent up at Rs 21.80.
In a clarification to BSE, MTNL confirmed that it is in process of preparation of its revival plan for the submission to DoT at the earliest to enable the government to consider the same.
The plan includes partnering with state-run BSNL to provide equipment for its mobile services in Delhi and Mumbai circles as managed service provider on revenue sharing basis. The roadmap also includes expanding basic or fixed services network in partnership with private players on a revenue share basis.
For the year ended March 31, 2016, the telecom company reported a consolidated net loss of Rs 2,005.76 crore against net loss of Rs 2,893.39 crore in the corresponding quarter a year ago.
In the past one month, the share price of MTNL soared nearly 20 per cent to Rs 20.80 on June 22 from Rs 17.40 on May 20.
(With agency inputs)