MTNL raises Rs 1500 cr through 10 year Bonds, can this transform MTNL ?

MTNL has raised Rs 1,500 crore by selling bonds to institutional investors on Monday at 8.41 % annual rate and the funds would be used to repay debt.

“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,” according to a report.

However, the amount raised will be used for paying the debt, which stood at Rs 14,760 crore at the end of June this year.

MTNL MobileIn the meantime, the company has been losing market share over the last many years. MTNL’s market share has come down to 4.83% as of May 2014 from 10.87% in March 2009.

On the other hand, the government is taking various measures to revive the company. Last year in September, it 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. In December 2013, then Dr. Manmohan Singh government also approved pension support to MTNL for about 43,000 employees who joined the state-run firm from Department of Telecommunication.

Plus, this led to infusion of an additional amount of about Rs. 1,500 crore (including interest) into MTNL as refund from government for the pension paid by the company to its staff.

In addition, on account of these decisions, MTNL earned a book profit of Rs. 2,348.49 crore for the FY 2013-14. In 2012-13, MTNL recorded a net loss of Rs. 5,321.12 crore on annual revenue of Rs 3,428.6 crore.

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9 Comments on "MTNL raises Rs 1500 cr through 10 year Bonds, can this transform MTNL ?"

 

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APpL€ LoVeR™
November 27, 2014 8:06 pm 8:06 PM

MTML Mauritius site: chili.mu/mobile
MTNL Delhi site: mtnldelhi.in/
BSNL Kerala site: kerala.bsnl.co.in
Is there anything for a shame on us???
What a difference between parent and child!!!

APpL€ LoVeR™
November 27, 2014 7:35 pm 7:35 PM

MTML Mauritius site: chili.mu/mobile
MTNL Delhi site: kerala.bsnl.co.in
Is there anything for a shame on us
What a difference between parent and child!!!

Sachin
November 22, 2014 4:09 pm 4:09 PM
The top officials of mtnl n bsnl are bribed by leading cellular oprators. That’s why they r doing nothing to improve there infra. One of the employee told me “humare paas wo sab hai jo bade bade cellular oprators ke paas bhi shayad hi hoga leking hume kuch karne nahi diya jaata. Saare baabuo ko maloom hai ki mtnl ke network mai kitna problem hai wo khud Airtel or vodafone use karte hai. Bade baabu kaamchor employees par action lene se darte hai jiski wajah se saare kaamchor ban gye hai.” This is only 1% of inside story. I only… Read more »
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