ITI Share Price Jumps More Than 10% — Here's Why
Friday's rally on ITI comes on the back of media reports that claim the company has identified four land parcels to monetise almost Rs 3,500 crore.
Shares of ITI Ltd. are buzzing in trade on Friday amid reports of the public company raising almost Rs 3,500 crore through land monetisation.
The stock is trading at Rs 321, reaching intraday high of Rs 331. This accounts for intraday gains of almost 10% compared to Thursday's closing price of Rs 294.25.
On a year-to-date basis, ITI shares have fallen more than 16% but have risen almost 5% in the last month.
Friday's rally on ITI comes on the back of media reports that claim the company has identified four land parcels to monetise almost Rs 3,500 crore.
ITI shares surge in trade. (Photo: NDTV Profit)
The combined size of the four land parcels stand at around 91.41 acres, with an estimated value of Rs 3,473 crore. These could include a 21-acre parcel in the B area of ITI Township, which is set to be transferred to Goods and Services Tax (GST) department, for a total consideration of just over Rs 800 crore.
“The government is working with ITI Limited to monetise certain vacant land parcels, so that the proceeds can be used to clear bank loans and pending statutory dues,” Union Minister of State for Communications Pemmasani Chandrasekhar said in response to a query from Bengaluru South MP Tejasvi Surya in the Lok Sabha
ITI's move to monetise these land parcels is part of the company's plans to clear all the debt as well as the employees' dues.
Engaged in manufacturing, trading and servicing of telecommunication equipment, ITI is a government-owned entity, which has been registering losses for a long time now.
The minister added that ITI currently has an order book of over Rs 18,000, but the company has bank borrowing of Rs 1,325 crore, while employee-related due to come at around Rs 339 crore.
