The central government has decided to postpone the merger of telecom companies BSNL and MTNL. After this decision, there was tremendous buying of shares of MTNL listed company on BSE index.
How much share price increased: During the trading, the share price of MTNL rose by more than 17 percent to reach a high of Rs 30.50. The share price was at the level of Rs 29.20 at the end of trading. There is an increase of 11.66 percent as compared to a day earlier. Let us tell you that on the last trading day i.e. Wednesday, the share price was Rs 26.15. At the same time, the market cap of the company has increased to Rs 1,839.60 crore.
Aborted merger: Minister of State for Communications Devusinh Chouhan told in Rajya Sabha, “The Government has approved the revival plan of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on 23rd October, 2019, inter alia. and in-principle approval for merger of BSNL. The merger of MTNL with BSNL has been postponed due to financial reasons.”
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BSNL Chairman and Managing Director PK Purwar, who also heads MTNL, has told a parliamentary panel that the DoT should consider taking out a special scheme to clear the debt of MTNL and its assets worth over Rs 26,500 crore. needed.