Mahanagar Telephone Nigam Limited (MTNL), a Government of India enterprise, has officially disclosed defaults in repayment of principal and interest obligations to multiple banks. The disclosure is made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015 and SEBI Circular SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019.

Overview of Default

MTNL has defaulted on principal and interest payments to seven major banks, with defaults spanning from August 2024 to February 2025. The defaulted loans are part of the company’s overall borrowing from banks and financial institutions.

Bank-wise details of default:

Total Default:

• Principal: ₹7,794.34 crore

• Interest: ₹939.34 crore

• Total Default Amount: ₹8,733.68 crore

Total Borrowings and Indebtedness

• Total outstanding borrowings from banks/financial institutions: ₹8,734 crore

• Total financial indebtedness including bonds and other loans: ₹34,842 crore

  • Bank Loans: ₹8,734 crore

  • Sovereign Gold Bonds (SG Bond): ₹24,071 crore

  • Loan for DoT for SG Bond interest: ₹2,037 crore

Nature of Obligation

The defaulted obligations include repayment of principal and interest for secured and unsecured loans taken by MTNL from the aforementioned banks. The default has been formally disclosed to both BSE (Scrip Code: 500108) and NSE (Symbol: MTNL).

Implications

This disclosure highlights the financial stress faced by MTNL, a public sector telecom operator. The company has a large debt burden and has failed to meet repayment obligations over several months. Investors, regulators, and lenders are formally informed as part of SEBI compliance, which mandates transparency in default reporting for listed companies.

Regulatory Compliance

The intimation follows:

• SEBI (LODR) Regulations, 2015 – Regulation 30: Timely disclosure of material events

• SEBI Circular No SEBI/HO/CFD/CMD1/CIR/P/2019/140: Requirement to report default in payment obligations

This ensures that shareholders and investors are aware of MTNL’s financial obligations and the risk associated with the company’s debt profile.

Conclusion

MTNL’s substantial outstanding borrowings and failure to meet principal and interest payments to multiple banks underscore the company’s ongoing financial distress. The disclosure acts as a formal warning to stakeholders, including banks, investors, and regulators, about the scale of MTNL’s debt exposure. The company will need to strategically manage its obligations and restructure loans to stabilize its financial position.

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The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

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