MTNL: Bad days may come for this telecom company, BSNL may take command of this company.

The government is considering handing over the operations of MTNL in Delhi and Mumbai to BSNL as MTNL is facing financial crisis despite getting government help two years ago. The proposal will be considered by the committee before being presented to the Cabinet for approval. It is important to note that this is not a merger and hence there is no need to liquidate or buy back MTNL shares. The idea is only to transfer operations from MTNL to BSNL. Despite MTNL's poor performance, it is surprising that its stock has not declined. Despite losses and low customer base, MTNL shares have risen 139% on the BSE in the past year. The share price has now doubled to Rs 46.3 from Rs 19.4 in July 2014. While the telecom industry is booming, MTNL is struggling as it has lost its market share and weakened its position in the industry. A similar trend can be seen in BSNL, where MTNL's share in the wireline and broadband sector has declined from 12.5% ​​to 6% from April 2014 to April this year. Its share in the mobile sector has declined from 0.4% a decade ago to around 0.2%. Also Read: Upcoming IPO: Investors should keep their money ready These 5 explosive IPOs are going to hit the market If BSNL takes over day-to-day operations, MTNL stock may fall with us. The telecom industry is considering merging the two companies due to financial issues. MTNL posted a loss of Rs 3,303 crore for the financial year ended March 31, 2024, as against Rs 2,911 crore last year. Also Read: Personal Loan: Know These Top 10 Personal Loans And Their Interest Rates Bad days may come for this telecom company, BSNL may take command of this company first Prabhat Khabar