MTNL receives shareholders' approval to raise Rs17,571 crore via bonds; stock gains ~2%

14 Oct 2022 , 02:12 PM

On Thursday, the state-owned MTNL said that its shareholders approved a plan to raise up to Rs17,571 crore through government-guaranteed debt bonds in a private placement basis.

According to the scrutinised report of MTNL’s annual general meeting conducted on October 10, shareholders of the loss-making public sector telecom business have also increased the board’s capacity to borrow up to Rs35,000 crore from banks and other financial institutions.

According to the report, 99.85% of shareholders approved the resolution to “offer or invite subscriptions for government-guaranteed, unsecured, listed, redeemable Non-Convertible Debentures (NCDs) in the nature of bonds, in one or more series I tranches, totaling up to Rs17,571 crore on a private placement basis.”

The resolution to increase the board’s borrowing capabilities from Rs 30,000 crore to Rs 35,000 crore gained 99.85% support.

At around 2.15 PM, MTNL was trading at Rs21.85 up by 1.86% from its previous closing of Rs21.45 on the BSE. The scrip touched intraday high and low of Rs22.60 and Rs21.70 respectively.

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