Shares of MTNL hit the 20 percent upper circuit of Rs 57.21 in morning trade on February 5, as optimism around its asset monetization plans for FY26 fuelled a sharp rally. This surge followed a 7 percent gain in the previous session, breaking a two-day losing streak.

This revival plan is being overseen by a group of ministers led by Union Defence Minister Rajnath Singh. An approval from the Department of Investment and Public Asset Monetisation (DIPAM) is also expected to come. One of the key bottlenecks, which was the absence of a full-time chief executive officer at NLMC has been resolved. The government recently appointed Vikas Anand as the full-time CEO of the body.

The government of India will use the money raised through the selling of the land parcels in helping BSNL and MTNL. These telecom companies have land assets at key locations of major cities including Chennai, Delhi and Mumbai. BSNL and MTNL will benefit from the sale proceeds as they can use the money for rolling out 4G and 5G rapidly in the key telecom circles and areas for scaling operations.