MTNL Share Price Surges 18% Amid Land Monetization Reports

Market Performance

Shares of Mahanagar Telephone Nigam Ltd. (MTNL) experienced an 18% surge in early trading on March 13, reaching a three-week high of ₹51.20. This increase follows reports of revenue generation through asset monetization. Over the past eight months, the company's stock has seen a 40% decline despite a significant 315% rise between July 2023 and July 2024.

Land Monetization Impact

Recent disclosures in the Lok Sabha highlighted that MTNL earned ₹2,134.61 crore by monetising its lands and buildings. According to the Minister of State for Communications, Pemmasani Chandra Sekhar, asset monetization is limited to properties not required for operational purposes and where ownership transfer is permissible.

Additionally, Bharat Sanchar Nigam Ltd. (BSNL) has generated ₹2,387.82 crore through similar measures, reinforcing the government's policy of monetizing unused assets while ensuring that state-owned telecom firms remain under public ownership.

Additional Asset Monetization Figures:

• Revenue from towers and fibre:
  • BSNL: ₹8,204.18 crore
  • MTNL: ₹258.25 crore
• Total asset monetization earnings (up to January 2025):
  • BSNL: ₹2,387.82 crore
  • MTNL: ₹2,134.61 crore

The government continues to monitor these transactions, ensuring alignment with approved policies while affirming that privatization of BSNL and MTNL is not under consideration.

Market Share Insights

As of December 2024, private telecom providers dominated the Indian wireless market with a 91.92% share, while BSNL and MTNL collectively held 8.08%.

Stock Performance Overview

Despite the recent price recovery, MTNL's share price has declined 40% in the past eight months. The company's telecom operations are concentrated in Mumbai and Delhi, making it a key regional player within the state-owned telecom sector.

Shareholding Structure

• Government of India: 56.3%
• Life Insurance Corporation (LIC): 13.44%
• General Public: 30.2%

Summary

MTNL's share price increase is attributed to the monetization of non-core assets, which has provided a financial boost. While the telecom sector remains competitive, the company's asset sales have contributed significantly to its revenue. The government continues to oversee MTNL's economic strategies, ensuring alignment with broader policy objectives.