President of India-Backed Telecom Company Receives Rs 50 Crore Tranche for 22.258 Acres Land Sale to C-DOT Worth Rs 200 Crore as Per AMRCD Order
The stock is up by 25 per cent from its 52-week low of Rs 210.20 per share.
ITI Limited, India's long-standing telecom PSU since independence, has announced the receipt of an additional Rs 50 crore from C-DOT, following a revised order from the AMRCD proceedings concerning a land dispute. This tranche is part of the Rs 200 crore consideration for the transfer of ITI's 22.258 acres of land in Electronic City, Bangalore, to C-DOT through a sale deed, as previously communicated to stock exchanges; the remaining balance is anticipated upon the completion of necessary statutory procedures by ITI.
About the Company
ITI Limited is a major organisation in the telecommunication industry that deals with the manufacturing, trading and servicing of telecommunication equipment. The company makes about 78 per cent of its sales from turnkey projects, which include large projects like BharatNet and ASCON. Service offerings make up 19 per cent of sales, including contract manufacturing and equipment testing.
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Manufacturing and trading is 3 per cent, with products like energy meters and IoT devices. The order book of ITI Limited is strong with major projects like Mahanet and Gujnet under BharatNet Phase-2. ITI is a preferred vendor to BSNL and Indian Defence services, state governments and PSUs, being the major clients. ITI has six manufacturing plants in India and has received a large amount of capital from the government for its revival.
The company has a market cap of over Rs 24,000 crore. As of December 2024, the promoters (President of India & Government of Karnataka) own a 90 per cent stake, DIIs own 0.04 per cent, the Government own 7.90 per cent and the public owns a 2.04 per cent stake. The stock is up by 25 per cent from its 52-week low of Rs 210.20 per share. Investors should keep an eye on this mid-cap telecom stock.
Disclaimer: The article is for informational purposes only and not investment advice.