Shares of Mahanagar Telephone Nigam Ltd (MTNL) surged nearly 13% in morning trade on Thursday after the state-owned telecom company approved the sale of its Powai property in Mumbai for Rs 891.53 crore. 

MTNL’s board approved the sale and transfer of its property at Plot-C, Technology Street, Powai, through a government-to-government (G2G) transaction with the Income Tax Department. The deal has received the required Presidential Approval and Alternative Mechanism approval, while the Income Tax Department has formally accepted the transaction.

The property covers a land area of 20,895.60 square metres. The transaction is part of MTNL’s broader asset monetisation efforts, which are aimed at unlocking value from its real estate holdings. The government has been working to monetise surplus and underutilised land held by state-owned companies through the National Land Monetisation Corporation (NLMC).

The latest deal also adds to MTNL’s recent property monetisation activity. In December 2025, the company approved the sale of its residential property at Bandra Kurla Complex in Mumbai to NABARD for Rs 350.72 crore through a similar government-to-government transfer.

The Powai transaction comes at a time when MTNL continues to face financial pressure. The company has reported loan repayment defaults, making asset monetisation an important part of its financial restructuring efforts. Moneycontrol has reported that MTNL’s lenders and the government are working on a resolution plan.

The latest property sale therefore gives MTNL access to a sizeable amount of funds while reducing its real estate holdings. Investors will now track how the proceeds are deployed and whether further asset sales can support the company’s financial position.

At 11:47 am, the shares of MTNL were trading 7.97% higher at Rs 24.80 on NSE.

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