MTNL Share Price Surges Up To 10% Amid Rs 6,000 Crore Funding Report For 4G Expansion

MTNL Share Price: Shares of Mahanagar Telephone Nigam Limited (MTNL) rose by nearly 10% on Monday, February 10, following reports that the Cabinet has approved an allocation of Rs 6,000 crore to Bharat Sanchar Nigam Limited (BSNL) to expand 4G services.

The funds will mostly go towards the capital expenditure of Bharat Sanchar Nigam Limited (BSNL) and MTNL, the Economic Times reported. The plan is to set up around 100,000 4G sites to improve connectivity for consumers and improve network quality, CNBC Aawaz reported. The proposal was reportedly approved by the Cabinet on February 7.

In three revival packages since 2019, the government has invested Rs 3.22 lakh crore in Bharat Sanchar Nigam Limited (BSNL) and MTNL, which have been funded for their 4G rollouts. According to the report, these efforts have enabled both companies to achieve operating profits since the financial year 2020-21.

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MTNL Stock Performance

After the announcement, MTNL shares rose 9.7% to touch an intraday high of Rs 57.50 on the NSE. The stock opened at Rs 56.50, higher than its previous close of Rs 52.40 and touched an intraday low of Rs 54.25.

MTNL shares have gained for four days in the last five days on reports of the government's plan to monetize MTNL's non-core assets worth Rs 16,000 crore. The stock gained nearly 14% last week, with a gain of 18% on February 5.

Positive outlook

Support from the government, whether through repeated stimulus packages or planned liquidation of its assets, has boosted investor confidence in the state-owned telecom company. With the recent funding for the expansion of 4G services, BSNL and MTNL are expected to strengthen their market position and improve their services.

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