MTNL fails to fund escrow for bond interest due Dec 21

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MTNL · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-1.7%Reaction day

₹37.44

prior close

₹37.70

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.3%-2.0% vs market

Telecom - Cellular & Fixed line services peers, median of 6sector-0.1%-1.6% vs sector

On the reaction day the stock moved 2.0 pts less than Nifty Microcap 250 and 1.6 pts less than its Telecom - Cellular & Fixed line services peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.5

10m

-1.0

15m

-0.8

30m

-1.4

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-1.7+0.3-2.0-0.1-1.6

Next day

-3.7+0.8-4.5+0.4-4.2

-2.0+0.1-2.1+1.4-3.4

-4.2-0.8-3.5-0.3-4.0

-4.3-1.1-3.3+0.6-5.0

-3.8+0.2-4.0+1.7-5.5

-2.4+1.6-4.0+0.5-2.9

15d

-2.2+2.5-4.7+1.7-4.0

-9.5-2.7-6.8-0.6-9.0

-14.1-0.3-13.8-4.2-9.9

-30.3-8.9-21.3-13.7-16.6

UpDownMarket · Nifty Microcap 250Sector · Telecom - Cellular & Fixed line services peers, median of 6Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

MTNL could not fund the escrow account with Bank of India for the 10th semi-annual interest (6.85%) on its Bond Series VI, due December 21, 2025, due to insufficient funds. The bonds are sovereign guaranteed, meaning the Government of India is obligated to pay if MTNL defaults on principal or interest.

Likely market impact

Negative signal of cash crunch at MTNL; sovereign guarantee protects bondholders but highlights the company's weak financial position.