The areas served by MTNL are the two most advanced metros in the country where a majority of business houses have either their headquarters of activities or at least branch offices. MTNL with a market share of about 13% of the National telecom Network, has a customer base of about 4.98 million lines at the end of 2002-03. With the increased economic activity due to liberalization, growth of lines is expected to be around 400,000 a year. The opening up of the value added services is an area which will considerably add to the prospects of MTNL due to greater utilization of the existing network, for cost to the Company to provide connectivity for these services will be very nominal.
The fact that MTNL possesses a vast network of operations and is a blue chip cpmpany , has made the company's shares a favourite with investors.
MTNL - A Blue-chip
Some of the factors that contribute towards making MTNL a blue-chip company are :
For the Investors
Govt. of India has disinvested approximately 275.63 million shares (including 70 million shares through GDR) upto 31.3.2002. MTNL's outstanding shares as an 31.3.2002 were 630 million (including 30 million through GDR IPO) out of which Govt. of India owned 354.37 million shares (56.25%). MTNL's share is being quoted at about 15 times its face value. The company also listed at the New York Stock Exchange (NYSE) on 7.11.2001.The following factors make it a success with the investors:
The company is now a Public Company in the United states and is subject to very stringent requirements .MTNL is the 2nd Telecom Public Sector Undertaking from India to be listed on the NYSE .The trading symbol of MTNL on the NYSE is MTE.