Loss-making state-owned telecom firm Mahanagar Telephone Nigam Limited (MTNL) will seek shareholders' approval to raise Rs 3,126 crore through debt bonds guaranteed by the government, the company said in a regulatory filing on Monday.
In 2022, the cabinet approved a second revival package for Bharat Sanchar Nigam Limited (BSNL) and MTNL amounting to Rs 1.64 trillion.
It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, and the merger of BBNL with BSNL, among others.
"...approval of the members be and is hereby accorded to authorise the Board of Directors of the Company to offer or invite or invite subscriptions for Government Guaranteed, Unsecured, Listed, Redeemable Non-Convertible Debentures in the nature of Bonds (NCDs), in one or more series or tranches, aggregating up to Rs 3,126 crore on Private Placement basis. This resolution shall be valid for one year from the conclusion of this Annual General Meeting (AGM)," said MTNL in the filing.
The total debt of MTNL was Rs 28,581 crore as of January, 2023, and the company said that it is expected to post a net loss of Rs 2,808 crore for the period of 2023-24, as per budget projection.