Shares of Mahanagar Telephone Nigam Ltd. hit an upper circuit after rallying 20% to Rs 64.08 on 18 July, following the company’s announcement that the government deposited Rs 92 crore to clear immediate bond interest dues for the state-owned firm.

The stock surged 20% to Rs 64.02, hitting a multi-year high on 18 July from the previous close of Rs 53.35 on BSE. The telecom firm’s market cap rose to Rs 4,033 crore.

On 17 July, a second semi-annual interest due on 7.59% of MTNL Bond Series VIII-A was paid from the money placed in the account of ESCROW, specially funded by the firm.

On 11 July, MTNL announced it couldn’t fund the escrow account for the semi-annual interest payment on its Series VIII-A bonds due to insufficient funds. This delayed funding violates the Tri Partite Agreement with the Department of Telecommunications and Beacon Trusteeship Limited.

The stock experienced heavy trading of 84.89 lakh shares, which resulted in a turnover of Rs 51.04 crores at the BSE, with a beta of 1.4 showing very high volatility in the year.

It has a relative strength index (RSI) of 79.3, indicating it is in the overbought zone and is trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages. The stock’s 52-week low was Rs 19.27, recorded on 18 July 2023.

At 3:30 PM, the shares of MTNL closed 20% higher at Rs 64.02 on BSE.

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