MTNL Shares Surge 20%: What’s Behind the Rally?

Mahanagar Telephone Nigam Ltd (MTNL) share price saw a sharp rise of 20% in its share price, reaching the upper circuit limit of ₹57.16 on the BSE on February 5. This surge follows a 6% gain in the previous session. The stock opened at ₹54, up from its last close of ₹47.64, and peaked at ₹57.16 during intraday trading. Around 12:10 PM, it was trading 17.74% higher at ₹56.09.

Over the past 5 days, MTNL share price has gained 26.34%, while in the last month, it rose by 16.68%. Over the past year, the stock has increased by 13.99%, and in the last 5 years, it has surged an impressive 400.53%.

Why Is MTNL Share Price Rising?

• Government Plans to Support MTNL

The recent rally in MTNL shares coincides with announcements from Finance Minister Nirmala Sitharaman regarding broadband connectivity for government secondary schools and healthcare centres under the ‘Bharat Net’ project. Additionally, reports suggest that the government may allow MTNL and BSNL to monetise their assets, potentially boosting their financial health.

• MTNL’s Financial Recovery and Rating Update

MTNL’s stock had dropped to ₹41.40 on January 28, 2025, and is still down 59% from its 52-week high of ₹101.88, reached in July 2024. However, in December 2024, CARE Ratings upgraded MTNL’s debt rating to ‘CARE AAA’ with a stable outlook, reflecting sustained government support.

• Revival Plans and Future Outlook

MTNL is a ‘Navratna’ status company, offering it more operational freedom. The government’s revival plan for MTNL and BSNL, worth ₹1.64 trillion, focuses on upgrading services, expanding telecom networks, and supporting their financial viability. While asset monetisation progress has been slow, the government continues to back MTNL’s operations and financial needs.

About Mahanagar Telephone Nigam Limited

Mahanagar Telephone Nigam Limited (MTNL), a fully owned subsidiary of Bharat Sanchar Nigam Limited (BSNL), is based in New Delhi, India. It offers telecom services in the metro cities of Mumbai and New Delhi, as well as in Mauritius, Africa.

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