Mumbai: State-run MTNL's scrip climbed over 4 percent Tuesday following reports the telecom company has raised Rs 1,500 crore by selling bonds to institutional investors and the funds would be used to repay debt.
Shares of MTNL went up by 4.28 percent to settle at Rs 29.25 on the BSE. In intra-day, it surged 5.52 percent to Rs 29.60.
At the NSE, it rose by 4.27 percent to end the trade at Rs 29.30.
In terms of volume, 6.46 lakh shares of the company were traded at the BSE, while more than 18 lakh shares changed hands at the NSE during the day.
"We floated a Rs 1,000 crore 10-year-bond issue, which was fully subscribed. We have received bids worth Rs 1,500 crore from investors and we will retain the full amount using the green-shoe option," a MTNL source said today.
The amount raised will be used for paying the debt, which stood at Rs 14,760 crore at the end of June this year.
The company has been losing market share over the last many years. MTNL?s market share has come down to 4.83 percent as on May 2014 from 10.87 per cent in March 2009.
The government is taking various measures to revive the company. Last year in September, it was decided to refund about Rs 5,700 crore to MTNL which it has to pay for wireless broadband spectrum in Delhi and Mumbai in 2010.
