'not Correct': Mtnl Clarifies On Interest Payment Default Report; Stock Down 3%

Shares of Mahanagar Telephone Nigam Ltd (MTNL) issued its explanation connected Tuesday complete a caller report, titled: "MTNL defaults connected liking costs for sovereign guarantee-backed Rs 6,100 crore". The state-run telecom PSU claimed that nan said study "is not correct."

"We would for illustration to pass you that 05th Semi Annual Interest w.r.t. 8.00 % MTNL Bond Series VII A (INE153A08105) is owed connected 15th May 2025. As per nan Structured Payment Mechanism of Tri-Partite Agreement (TPA) signed among MTNL, Department of Telecommunications (DoT), Ministry of Communications, Govt. of India and Beacon Trusteeship Limited, MTNL has to money nan semi-annual liking into nan ESCROW Account pinch capable magnitude 10 days earlier nan owed date. It whitethorn besides beryllium mentioned that each Bonds issued by MTNL are Sovereign Guaranteed Bonds by Government of India. However, successful lawsuit of immoderate default made by MTNL successful costs of Principal and Interest connected nan Bonds issued by it past Sovereign Guarantee will beryllium invoked by nan Debenture Trustee and nan Government of India is obliged to make nan costs to MTNL for nan same. The invocation of Sovereign Guarantee is based connected Tripartite Agreements (TPA) entered into betwixt Govt of India, Debenture Trustee and MTNL which were revenge pinch BSE erstwhile Bonds were listed. In position of supra provisions of TPA, it is informed that owed to insufficient costs MTNL could not money nan ESCROW Account pinch nan capable amount. Kindly return nan aforesaid connected record," it stated.

"It whitethorn beryllium mentioned that MTNL had intimated non backing of Escrow Account maintained pinch Bank of India 10 days earlier nan owed day of costs of 05th Semi Annual Interest w.r.t. 8.00 % MTNL Bond Series VII A (INE153A08105) which is owed connected 15th May 2025," MTNL added.

"It is to beryllium informed that arsenic per nan Structured Payment Mechanism of Tri-Partite Agreement (TPA) signed among MTNL, Department of Telecommunications (DoT), Ministry of Communications, Govt. of India and Beacon Trusteeship Limited, nan Government of India costs nan ESCROW Account pinch capable magnitude 3 days earlier nan owed day of costs of Interest aft rumor of Notice of Invocation of Guarantee by nan Debenture Trustee," nan state-owned patient further stated.

On nan stock-specific front, MTNL was down 2.67 per cent astatine Rs 41.18. At this price, it has corrected 19.87 per cent year-to-date (YTD).

Technically, nan scrip traded little than nan 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day elemental moving averages (SMAs). Its 14-day comparative spot scale (RSI) came astatine 40.79. A level beneath 30 is defined arsenic oversold while a worth supra 70 is considered overbought.

The company's banal has a antagonistic price-to-earnings (P/E) ratio of 0.78 against a price-to-book (P/B) worth of (-)0.10. Earnings per stock (EPS) stood astatine (-)52.60 pinch a return connected equity of (RoE) 13.10. According to Trendlyne data, MTNL has a one-year beta of 1.6, indicating precocious volatility.

"At present, 56.25 per cent of equity shares are held by nan authorities and nan remaining 43.75 per cent of shares are held by FIIs, Financial Institutions, Banks, Mutual Funds and others, including individual investors," MTNL mentioned.