MTNL dismisses delisting rumours
5 July 2015 4:49 AM IST
State-run MTNL on Friday said there are no plans to delist its shares from the stock exchanges. “It is stated that as far as MTNL is concerned no such proposal has been under consideration of the board,” MTNL said in a clarification to BSE after its stock price surged on reports of delisting. The MTNL stock was up 19.88 per cent to Rs 19.90 apiece in the afternoon trade.
Meanwhile Telecom Secretary Rakesh Garg said during an event here that any decision on BSNL, MTNL merger will be taken after studying the Indian Institute of Management (IIM) committee report, which is likely to be submitted shortly. The Department of Telecom (DoT) had asked IIM Bangalore to prepare a feasibility report on <g data-gr-id="16">merger</g> of state-run BSNL and MTNL. Garg said DoT will take 4-5 months to study the report and then take a call on the merger.
In a bid to revive BSNL and MTNL, DoT is taking various initiatives as both the state-run companies have been making losses and losing market share to private telecom operators. BSNL had incurred Rs 7,019 crore loss in 2013-14, Rs 7,884 crore in 2012-13 and Rs 8,850 crore in 2011-12, whereas MTNL had reported a loss of Rs 5,322 crore in 2012-13 and Rs 4,109 crore in 2011-12.
... But its <g data-gr-id="33">scrip</g> rises 20% on delisting buzz
Shares of state-run telecom operator MTNL surged 20 per cent on Friday amid reports of delisting even as the company denied that any such proposal is being considered. The stock zoomed 19.88 <g data-gr-id="34">per cent</g> to settle at Rs 19.90 -- its highest trading permissible limit for the day on the BSE. On the NSE, the scrip soared 19.94 per cent to touch its upper circuit limit of Rs 19.85.
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