MTNL shares shot up by 13.7% on Thursday, closing at ₹61.89 on the BSE, after the company reassured investors that its sovereign guarantee would cover a bond payment default. The rally came in response to MTNL’s announcement that it failed to fund the semi-annual escrow deposit for its 6.85% MTNL Bond Series VI, due on December 21, 2024, citing insufficient funds. However, under a Tripartite Agreement (TPA) involving MTNL, the Department of Telecommunications, and Beacon Trusteeship Ltd., the Indian government is obligated to invoke its sovereign guarantee in such cases, ensuring bondholders receive their payments. This reassurance added fuel to the recent upswing in MTNL’s stock, which has already surged 24.63% over the past month.