MTNL ringing loud

MTNL is ringing pretty loud today morning. From its close of Rs.13.98 yesterday, it opened higher at Rs.14.75 and went on to hit a new high at Rs.15.72 and continues to trade around Rs.15 levels. Its 20% UC for the day is at Rs.16.77.

The stock price surged today on news report that the Govt might start with its asset monetization drive by putting into gear the sale of MTNL’s realty assets.

The sale of assets will take place through auction via the online bidding platform set up by MSTC for non-core assets.

MTNL has identified various assets like residential quarters in Noida, shop-cum-residential complexes in Delhi and 36 acres in various areas across Mumbai.

The feasibility study is expected to be completed over the next 2-3 months after which the base price will be discovered for the auction.

If MTNL asset sale goes off well, Govt will put other non-core assets of BSNL, BEML and SCI.