Positive News Snapshot: MTNL & Rajesh Exports Ltd.

~Sumon Mukhopadhyay 

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MTNL (Rs.35.50) Asset Monetisation Gains Traction as Government Revival Plan Moves Forward.

India’s long-running effort to revive its state-owned telecom operators is showing tangible execution on the ground, with Mahanagar Telephone Nigam Limited (MTNL) finally reporting a material asset monetisation transaction—after years of anticipation. Photo: ET Telecom.

The Government of India has set ambitious monetisation targets under its broader public-sector revival framework, aiming to realise ₹900 crore from BSNL and ₹4,573 crore from MTNL by FY2025–26.

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🔹BKC Property Sale: A Concrete Step Forward:

MTNL has received board approval to sell its residential property in Mumbai’s Bandra Kurla Complex (BKC) to the National Bank for Agriculture and Rural Development (NABARD) for ₹350.72 crore.

Key details:

• The property comprises 28 residential units
• Spread across 2,680 square metres
• The transaction will be executed either as:
  • a government-to-government transfer, or
  • a direct sale to NABARD

The development was formally disclosed through an exchange filing under SEBI regulations, ensuring transparency and regulatory compliance.

This transaction flows from a Presidential approval granted in July 2020, which explicitly permitted MTNL to monetise non-core assets as part of its revival roadmap.

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🔹Context: Cabinet-Approved Revival Plan:

The asset sale aligns with the Cabinet-approved revival plan for BSNL and MTNL cleared in October 2019, under the framework laid down by DIPAM (Department of Investment and Public Asset Management).

Progress so far:

• BSNL has monetised land assets worth ₹1,341 crore since 2019
• MTNL, until now, had reported no completed asset sales
• This BKC transaction therefore marks MTNL’s first visible monetisation outcome

The government has repeatedly clarified that there is no plan to shut down BSNL or MTNL, and that monetisation proceeds are being utilised strictly in accordance with Union Cabinet approvals.

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🔹Bond Servicing: Signal of Financial Discipline:

In a separate but equally important disclosure, MTNL informed stock exchanges that it has funded the designated escrow account for servicing its debt obligations.

Key points:

• The escrow account is maintained with Bank of India
• Funded on December 18, 2025
• Pertains to the 10th semi-annual interest payment
• Instrument: 6.85% MTNL Bond Series VI
• ISIN: INE153A08097
• Interest due date: December 21, 2025

The company clarified that the escrow funding ensures timely servicing of interest obligations in accordance with bond terms.

While this does not alter MTNL’s structural challenges, it reduces near-term credit-event anxiety and reflects continued sovereign support.

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🔹Industry Positioning:

As of October 31, BSNL, MTNL, and APSFL together command a 20.22% share of India’s wireline market, underscoring their continued relevance in fixed-line and enterprise connectivity—despite erosion in the mobile segment.

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SumanSpeaks View:

This is not a turnaround story—yet.

But it is an execution story finally beginning to unfold.

• Asset monetisation is moving from intent to action
• Debt servicing remains orderly
• Government support continues to be explicit rather than implied

For MTNL, the significance lies less in the ₹350 crore quantum and more in the precedent it sets. Once the first asset is monetised, subsequent transactions tend to move faster—especially under Cabinet-backed mandates.

Markets usually wait for proof. This is one such proof.

While monetisation alone cannot resolve MTNL’s structural constraints, the shift from policy announcements to executed transactions meaningfully improves balance-sheet visibility and reduces downside uncertainty.

Company	Key Positive Developments
MTNL	Board approved sale of prime residential property at Mumbai BKC to NABARD for ~₹350.7 crore. Part of government-led asset monetisation to improve liquidity and reduce debt. Stock reacted positively on asset-sale approval.
Rajesh Exports	Strong Q2 FY26 earnings recovery with sharp YoY jump in net profit. Operating performance improved after weak earlier quarters. Global leadership in gold refining and manufacturing remains intact.

Conclusion: MTNL benefits from asset monetisation - led liquidity improvement. Rajesh Exports shows earnings recovery, but consistency remains key.

Rajesh Exports Ltd (Rs.232) current trading above all major moving averages signals a strong technical position. The stock’s ability to sustain levels above the 200-day moving average is often viewed as a key indicator of medium- to long-term strength.

The sharp 15% move today also suggests a shift in participation, with momentum buyers entering alongside positional accumulation—often seen at the early stage of trend resumption rather than at exhaustion.