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MTNL shares dip 6% as company again defaults payment of instalment to banks

Mahanagar Telephone Nigam (MTNL) shares slipped 5.6 per cent in trade on Monday, logging an intraday low at ₹41.38 per share on BSE. The stock declined after the company defaulted on the payment of principal (instalment) and interest to Union Bank of India, Bank of India, Punjab National Bank, State Bank of India (SBI), UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank. However, around 12:31 PM, MTNL share price recovered slightly and was down 0.71 per cent at ₹43.54 per share on BSE. In comparison, the BSE Sensex was up 1.26 per cent at 79,539.64. The market capitalisation of the company stood at ₹2,743.02 crore. The 52-week high of the stock was at ₹101.88 per share and the 52-week low was at ₹32.7 per share. "Further to our letter of even no dtd. 05.07.2024, 19.07.2024, 05.08.2024, 05.09.2024, 08.10.2024, 12.11.2024, 11.12.2024, 15.01.2025, 12.02.2025 & 15.03.2025 and pursuant to regulation 30 of Sebi (LODR) 2015 and Sebi Circular No Sebi/HO/CFD/CMD1/CIR/P/2019/140 dated 21.11.2019, we wish to inform you that MTNL has defaulted in the Payment of Principal (Instalment) and Interest," the filing read. With this the amount of outstanding borrowings from Banks/Financial Institutions stand at ₹8,346 crore. The total financial indebtedness of the company including Short Term and Long Term debt stands at ₹33,568 crore which includes a bank loan of ₹8346 crore, SG Bond of ₹24,071 crore and loan from DoT for paying SG Bond interest of ₹1,151 crore. Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications company in India which provides telephone services. MTNL has been a significant player in India's telecom sector, offering services such as fixed-line telephony, broadband, and mobile services. As per its official website, MTNL was set up on April 1, 1986, by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services, and to raise revenue for telecom development needs of India's key metros Delhi, the political capital and Mumbai, the financial capital of India. In one year, shares of MTNL gained 21.5 per cent as compared to Sensex's rise of 6.6 per cent.