InvestorQ : Is it true that MTNL is looking to monetize some of its properties in Mumbai and is that positive for the stock?
Rashi Mehra made post

Is it true that MTNL is looking to monetize some of its properties in Mumbai and is that positive for the stock?

Answer
user profile image
Archita Jajjoo answered.
4 weeks ago


In less than a year after MTNL completed one of its most ambitious voluntary retirement schemes, it has now undertaken the second round of monetization of its real estate properties across India. MTNL owns some marquee properties in Delhi and Mumbai.

Over the weekend, it has been reported that MTNL submitted a list of its owned assets for monetization to the government of India. MTNL will look to monetize some of its real estate properties including land parcels in Mumbai, staff quarters and telephone exchanges.

The idea of the monetization exercise is to reduce the cash burn by reducing the debt further and to also cut down on the regular maintenance costs that the company has been encouraging resulting in massive losses over the last few years.

The Minister of Finance for State, Anurag Thakur, has confirmed that global property consultants had been enlisted to find buyers. These consultants will arrive at an indicative valuation of such properties and come up with multiple ways to monetize the same.

MTNL next priority is to be profitable on a standalone basis. Like the other telecom companies, MTNL also took a deep hit after the price war launched by Reliance Jio and could not compete with the rapid changes in customer broadband tastes.