MTNL to seek shareholders’ nod to raise Rs 3,126 cr through bond

Loss-making state-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) will seek shareholder approval to raise Rs 3,126 crore through government-guaranteed government bonds, the company said in a regulatory filing on Monday.

In 2022, the Cabinet approved a second revival package for Bharat Sanchar Nigam Limited (BSNL) and MTNL worth Rs 1.64 trillion.

It provided financial support for capital expenditure, viability gap financing for rural landlines, financial support for balance sheet decongestion, clearing of AGR dues and merger of BBNL with BSNL, among others.

“…approval of the members is and is hereby granted to authorize the Board of Directors of the Company to offer or invite subscriptions for government guaranteed, unsecured, listed, redeemable non-convertible debentures in the nature of debentures (NCDs), in one or more series or tranches, aggregating to Rs 3,126 crore on private placement basis. This resolution shall be valid for one year from the conclusion of this Annual General Meeting (AGM),” it said MTNL in the filing.

MTNL’s total debt stood at Rs 28,581 crore as of January 2023, and the company said it is expected to post a net loss of Rs 2,808 crore for the period 2023-2024, as per the budget forecast.