Business
Government Deposits Rs 92 Crore to Clear MTNL Bond Interest Dues, Stock Hits Multi-Year High
Shares of Mahanagar Telephone Nigam Limited (MTNL) surged to a multi-year high on Thursday as the government deposited Rs 92 crore to clear immediate bond interest dues of the state-owned telecom firm.
Trading on the BSE, MTNL stock soared 20% to Rs 64.02, hitting an upper circuit, up from the previous day’s close of Rs 53.35. This push elevated the market capitalization of the telecom company to Rs 4,033 crore.
In a communication to the bourses, MTNL stated, «The funding of Designated ESCROW Account for Payment of 02nd Semi-Annual Interest w.r.t. 7.59% MTNL Bond Series VIII-A (INE 153A08154) due on 20th July 2024 has been completed on 17.07.2024.»
Heavy trading volumes of 84.89 lakh shares led to a turnover of Rs 51.04 crore on BSE, showcasing significant investor interest in MTNL.
The beta of MTNL stock stands at 1.4, indicating high volatility over a year. Technical analysis reveals an overbought position with the relative strength index (RSI) at 79.3.
Additionally, the stock is currently trading above multiple moving averages including the 5-day, 10-day, 20-day, 30-day, 50-day, 200-day, and 100-day averages. However, the stock had previously hit a 52-week low of Rs 19.27 on July 18, 2023.
Earlier this month, on July 11, MTNL faced challenges in funding the escrow account for the semi-annual interest payment due to insufficient funds, as per a Tri-Partite Agreement (TPA) involving the Department of Telecommunications (DoT) and Beacon Trusteeship Limited.
Looking ahead, MTNL has around Rs 4,810 crore or $576 million in local bonds to service for the remainder of 2024, signaling ongoing financial obligations for the company.
