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MTNL to amend articles of association to monetise land assets

Shareholders of the company will vote on this proposal at its annual general meeting on November 25
Representational image.
Representational image.
File photo

Our Special Correspondent   |   Mumbai   |   Published 29.10.21, 03:26 AM

The Mahanagar Telephone Nigam Ltd (MTNL) is taking shareholders’ approval to amend its articles of association (AoA) to monetise its land assets.

Shareholders of the company will vote on this proposal at its annual general meeting on November 25. MTNL plans to lease these assets for a period of up to 30 years.

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In its communication to shareholders, MTNL said that the Group of Ministers (GoM) had on December 21, 2020 decided that for any property with a value of Rs 10 crore or less, it  will not require approval of the GoM.

“In view of this decision , the DoT has directed MTNL to change its AoA,” it said.

MTNL added that if this proposal is approved, it will be able to monetise its land and building assets faster and generate some funds to reduce debt and meet the capex and opex  requirements. The board of directors of the company had on June 29, 2021 approved this alteration in its AoA.

Shares of the company on Thursday ended at Rs 18.30 — a gain of 2.81 per cent over Wednesday’s close.



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