MTNL shares rise as it seeks shareholder nod for fundraising, monetisation of assets

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Shares of Mahanagar Telephone Nigam Ltd (MTNL) on Thursday appreciated nearly 5 per cent, a day after it said it will seek shareholders' nod for monetization of land and buildings as well as for raising up to Rs 6,500 crore through non-convertible debentures.

On the BSE, the scrip jumped 4.88 per cent to hit its upper circuit limit of Rs 7.95. Its shares on the National Stock Exchange closed at Rs 7.90, up 4.64 per cent. In terms of equity volume, a total of over 2.29 lakh shares were traded on bourses during the day.

The state-owned company on Wednesday said its extraordinary general meeting will be held on January 8, 2020, to seek shareholders' nod for monetisation of land and buildings as well as for raising up to Rs 6,500 crore through.

The company would seek shareholders' approval for issue of non-convertible redeemable non-cumulative preference shares on a private placement basis to the government towards payment of 4G spectrum cost.

Approval is also being sought for monetisation of land and buildings as specified/ identified by its board in line with the Department of Investment and Public Asset Management guidelines and as per revival plan of the company approved by the Union Cabinet recently. 

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