MTNL Shares Surge Over 13% After Rs 2,135 Crore Boost from Asset Monetization

Mahanagar Telephone Nigam Ltd (MTNL) shares jumped over 13% on Thursday, March 13. The stock soared to ₹48.93 on NSE, driven largely by the company’s successful asset monetization initiative, which helped MTNL raise more than ₹2,135 crore.

Minister of State for Communications, Pemmasani Chandra Sekhar, informed Parliament that BSNL and MTNL have collectively generated Rs 12,984.86 crore through asset monetization since 2019. Source: Economic Times/Moneycontrol

How Much Have BSNL and MTNL Earned So Far from Monetization?

Interestingly, MTNL isn’t the only telecom PSU (public sector undertaking) making money in this way. Since 2019, both BSNL and MTNL have earned a massive ₹12,984.86 crore through asset sales, according to government data shared in Parliament.

Here’s a breakdown:

• BSNL has earned ₹2,387.82 crore from asset monetization directly.
• BSNL’s total monetization earnings stand at ₹8,204.18 crore, while MTNL has earned ₹258.25 crore from assets like towers and fiber until January 2025. 
• MTNL’s recent monetization move adds a huge ₹2,135 crore; BSNL has also been selling off unutilized assets, adding to a substantial sum over time. Source: Economic Times/Moneycontrol

What Triggered the Rally in MTNL’s Stock Price?

The big push came when the Minister of State for Communications revealed in Lok Sabha that MTNL earned ₹2,135 crore by monetizing its land and building assets. This announcement was part of a broader update on how state-owned telecom giants like BSNL and MTNL leverage their non-core assets to raise funds and improve financial health.

The government’s asset monetization strategy essentially involves selling or leasing properties, fiber networks, towers, and other physical assets that these companies don’t immediately need. This way, they can generate revenue without depending solely on their traditional telecom business. Source: Economic Times/Moneycontrol

What Kind of Assets Are Being Monetized?

According to the minister’s statement, BSNL and MTNL only monetize land, buildings, towers, and fiber assets they don’t need for their future use. These are typically properties inherited from when telecom services were heavily government-run or assets no longer strategically important.

The Minister emphasized that these are surplus assets, and the companies retain full ownership rights to transfer them. 

Why Is the Government Pushing Asset Monetization?

The move is part of the government’s broader strategy to revive loss-making telecom PSUs. Over the years, MTNL and BSNL have faced stiff competition from private players like Reliance Jio, Bharti Airtel, and Vodafone Idea, which has led to massive losses, especially due to outdated technology and declining subscriber bases.

By selling unused assets, these companies can:

• Raise immediate cash to clear debts.
• Fund modernization efforts like rolling out 4G/5G services.
• Improve their balance sheets, making them more stable for future collaborations or investments.

The government closely monitors the asset monetization policy to ensure it’s implemented effectively and benefits the companies long-term.

Know More:  SEBI Registered investment advisory |  Stock investment advisory

MTNL Share Price Journey: A Rollercoaster Ride

Let’s look at how MTNL’s shares have performed over time. It’s been quite a bumpy ride.

1. Performance in the Past Year:

On a year-to-date (YTD) basis, MTNL’s stock has fallen by 15.66%.

2. Last Six Months:

• Over the past six months, the stock has fallen 23.25%, reflecting broader market uncertainties and specific issues related to MTNL’s business performance.

3. Last Three Months:

• In the three months leading up to March, MTNL’s shares were down 25.95%, showing that recent investor sentiment has been cautious — likely due to concerns over profitability and future growth.

4. One Month Overview:

• Even in the last month, the stock price has dropped 12.44%, making Thursday’s rally an important positive reversal. Source: Economic Times

What Does This Mean for Investors?

The surge in MTNL’s stock is good news for existing MTNL shareholders, but what about new investors or those considering buying in now? Here’s a simplified view:

Positive Signs:

• Significant cash inflow from asset monetization can improve MTNL’s financial health.
• A clear government-backed revival strategy could support future growth if implemented well.
• Market recognition of the monetization effort, as reflected in the share price jump.

Risks to Consider:

• MTNL still has a weak core telecom business, with intense competition from private giants.
• Revenue from telecom operations is not growing fast, so reliance on one-time asset sales isn’t a long-term solution.
• The stock remains highly volatile, with steep rises and falls—making it risky for short-term investors.

What Lies Ahead for MTNL and BSNL?

While MTNL has won with this monetization, the road ahead remains challenging. Both BSNL and MTNL are working to roll out 4G services, and there’s talk about upgrading to 5G in the future. But the success of these plans depends on:

• Timely government support and funding.
• Efficient use of funds raised from asset sales.
• Ability to compete with established players like Reliance Jio and Airtel, who already dominate the market with cutting-edge technology and pricing strategies.

Moreover, customer retention and network modernization will be key if these PSUs want to become relevant players again.

Final Thoughts

Retail investors wondering whether to jump into MTNL now should be cautious. 

• The surge is driven by a one-time event—monetization—not necessarily by improvements in core business performance.
• MTNL’s overall telecom operations remain stressed, and future profitability is uncertain.
• Asset sales may not be a sustainable way to keep the company afloat in the long run.

The 13% surge in MTNL’s share price reflects investor optimism over its recent asset monetization success. However, for sustained growth, MTNL must address deeper issues like competitive positioning and network expansion. While the government’s support and smart monetization of non-core assets offer a much-needed breather, the next few quarters will be crucial to watch.

So, whether you’re already invested or thinking about it, keep an eye on how MTNL uses this money and whether it can revive its business in a fiercely competitive market.

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