Shares of Mahanagar Telephone Nigam Ltd surged over 17% on Thursday, Octoer 1, after the company said its board has cleared the sale of its property in Powai, Mumbai to the Income Tax Department for ₹891.5 crore. MTNL, in an exchange filing, said its board of directors approved the proposal for the sale and transfer of MTNL property at Powai Plot-C, Technology Street, Powai, Mumbai, to the Income Tax Department.
The company ascertained the sale value of ₹891.53 crore for a land area of 20,895.60 square metre as mentioned in the rectification deed, through government-to-government transfer/direct sale, in accordance with the receipt of the Income Tax Department’s formal acceptance and based on Presidential Approval and Alternative Mechanism approval.
In a similar transaction earlier this year in May, another government-owned entity, the National Bank for Agriculture and Rural Development, had acquired leasehold rights for a property in Bandra-Kurla Complex , Mumbai from MTNL. This land was leased for the price of ₹350.72 crore.
This deal involved the sale of Plot No. R4, GN Block, in BKC, a strategically significant business district in Mumbai. The property comprises a land parcel of 2,680 square metre and a built-up area of 4,021.43 square metre. Shares MTNL surged as much as 17.2% on Thursday to hit an intraday high of ₹26.94.
The stock was up 12% around 11.00 am. The stock has closed in the green in four out of the last 10 trading sessions. In the past six months, the shares have risen over 7.60%. The stock is trading 41.01% below its 52-week high of ₹44.67. The current stock price stands at ₹25.90 per share.