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On Friday, the last trading day of the week, shares of Mahanagar Telephone Nigam Limited (MTNL) rose over 18 percent. The jump comes as MTNL has signed a Memorandum of Understanding (MoU) with Bharat Sanchar Nigam Limited (BSNL).
In fact, in a filing to stock exchanges on September 1, MTNL said the MoU with BSNL would pave the way for synergy of operations between the two public sector companies in the country. The MoU will also provide a comprehensive framework for implementing the decisions taken at the Cabinet meeting held on July 27. Let us inform you that the 37th Annual General Meeting (AGM) of the company is going to be held on September 29 at 11:30 am.
Share Increase: Shares of MTNL touched Rs 26.89 during Friday trading. At the end of trading, the share price was Rs. was 25.11. It represents an increase of 11.55% from the previous day. The market cap of the company is Rs. 1,581.93 crores.
When will the merger take place: Recently there were reports that an inter-ministerial group of secretaries will decide on the merger of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). A proposal in this regard is being prepared by the Department of Telecommunications (DoT).
According to media reports, DoT is in the final stages of preparing a roadmap for merging MTNL with BSNL. The proposal will be reviewed and approved by the Inter-Ministerial Group of Secretaries. Once the blueprint is approved, it will be placed before the cabinet for taking it forward. Let us tell you that the merger between the two sick telecom units has been pending for the past few years.