Shares of Mahanagar Telephone Nigam jumped as much as 7 per cent in early trade after a parliamentary panel suggested the merger of state-run telecom firms BSNL and MTNL for their long-term survival.
The Committee on Petitions, chaired by Member of Parliament from the Bharatiya Janata Party Bhagat Singh Koshyari, in its report tabled in Lok Sabha on Thursday, said the merger would give both the entities a chance to compete against private sector players.
The synergies and advantages inherent in an integrated national telecom infrastructure would pave the way for lower cost of investment and greater combined ability to face competition, the report added.
At 11.35 a.m., the MTNL stock was trading higher by 3.09 per cent at Rs. 25.05 on the BSE. On the NSE, the shares were up 2.67 per cent at Rs. 25.
MTNL had reported widening of its standalone net loss at Rs 819.96 crore, surpassing its total revenue, during the three-month period ended December 31, hit by increase in finance cost.
The company had posted a net loss of Rs 671.59 crore in the same period a year ago. Net loss surpassed its total income of Rs 690.59 crore. The revenue declined by 8.6 per cent from Rs 756.22 crore in the corresponding quarter of previous fiscal. – The Hindu Business Line