MTNL Shares Surge on Asset Monetization Plan and Budget Boost

MTNL shares soared 20% on February 5, reaching Rs 57.21. The spike followed optimism about the company’s asset monetization plan and Union Budget 2025’s supportive measures. The previous session saw a 7% gain after a two-day losing streak.

Finance Minister Nirmala Sitharaman announced a scheme to provide broadband to select government schools and health centers. This boosted investor sentiment. Arunish Chawla, Secretary of DIPAM, reaffirmed the government’s commitment to help MTNL and BSNL monetize their assets to clear liabilities.

Despite the positive response, MTNL still faces challenges. The company has significant debt and was classified as an NPA by most state-owned lenders last October. Investors are closely watching how MTNL and BSNL will execute their asset monetization plans and the impact on their financial health.

Government support and the asset monetization strategy are crucial for revitalizing MTNL and improving its financial position.