State-owned telecom service provider MTNL stocks surged up to 19 per cent on expectations that the Digital Communications Commission (DCC), previously Telecom Commission, will approve a revival plan for the cash-strapped company.
MTNL stocks surged 19 per cent around 11.30 a.m. to touch an intra-day high Rs 14.35 per share.
At 1.20 p.m., the shares traded at Rs 13.90, higher by Rs 1.89 or 15.74 per cent from the previous close.
The DCC meeting is likely to take a decision on MTNL’s revival plan including a voluntary retirement scheme (VRS).
“Revival of MTNL through introduction of VRS, refund of interest on surrendered broadband wireless spectrum (BWA) and debt restructuring by monetization of land and building assets of MTNL will be taken up in the second meeting of the DCC on February 21,” a DoT memo said on Wednesday.
MTNL is struggling with Rs 20,000 crore debt and Rs 833 crore loss in the Q3 of the current fiscal. The part of prime land in Delhi and Mumbai if sold can fetch MTNL about Rs 500 crore, according to MTNL officials.