Vodafone Idea, MTNL, ITI shares & others rise up to 14% on nod to BSNL revival package

Shares of telecom sector firms such as Vodafone Idea Ltd, Mahanagar Telephone Nigam Ltd (MTNL), ITI Ltd, Bharti Airtel, Indus Towers and GTL Infrastructure rose up to 14% in the afternoon session today after the Cabinet Committee on Economic Affairs (CCEA) cleared a revival package of Rs 89,047 crore for the state-owned Bharat Sanchar Nigam Ltd (BSNL).   

The approval for revival package acted as a sentiment booster for the telecom sector stocks. MTNL shares were the top gainers rising 14.09% to Rs 22.75 against the previous close of Rs 19.94 on BSE.  Market cap of the firm rose to Rs 1,411 crore.  

Telecom firm Vodafone Idea’s shares rose over 8% to Rs 7.68 compared to the previous close of Rs 7.08 on BSE. Market cap of the firm rose to Rs 37,288 crore. The stock has gained after four sessions.  Interestingly, government owns 33.44% stake (largest shareholder) in the telecom firm.   

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Shares of government-owned telecom equipment maker ITI Ltd zoomed 6.41% to Rs 116.05 against the previous close of Rs 108.40 on BSE. Market cap of the firm rose to Rs 10,763 crore. 

Shares of mobile tower installation firm Indus Towers also gained 4.74% to Rs 164.65 against the previous close of Rs 157.20 on BSE.  Market cap of the firm rose to Rs 43,738 crore.  

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Shares of telecom tower company GTL Infrastructure climbed 3.75% to Rs 0.83 against the previous close of Rs 0.80 on BSE. Market cap of the firm rose to Rs 1026 crore.  

Stock of leading telco Bharti Airtel too gained 2.19% to Rs 847.35 in the afternoon session. Market cap of the firm rose to Rs 4.71 lakh crore. The stock is trading 5% away from the 52 week high of Rs 888 hit on  May 31, 2023.  

Under the third revival package, the total authorised capital of BSNL has been increased from Rs 1.50 lakh crore to Rs 2.10 lakh crore. The package also includes allotment of 4G/5G spectrum for BSNL through equity infusion.

The package will be utilised for enhancing BSNL's 4G and 5G services. The Central government believes that a government PSU in telecom should flourish because of its strategic importance, sources told BTTV.  

The Modi government last announced a revival package for BSNL in July 2022 worth Rs 1.64 lakh crore to provide 4G and 5G services to turn the telecom PSU into more profitable entity. The package comprised cash component worth Rs 43,964 crore and non-cash component worth Rs 1.2 lakh crore spread over a duration of four years.

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Also Read: Cabinet approves Rs 89,000 crore revival package for BSNL; authorised capital increased to Rs 2.10 lakh crore

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