ITI zooms 25% in 2 days as co-led consortium bags Rs 3k-cr BharatNet deal

An ITI-led consortium has emerged as the lowest bidder (L1) for a Rs 3,022-crore BharatNet Project for Middle Mile Network

ITI shares have continued their northward movement, surging 9 per cent to Rs 289.70 on the BSE in Friday’s intra-day trade. ITI's share price has zoomed 25 per cent in two days after a consortium being led by the company emerged as the lowest bidder (L1) for a Rs 3,022-crore BharatNet Project for Middle Mile Network.

 

The stock of the state-owned telecom equipment and accessories company is quoting higher for the fourth straight trading day; it has rallied 31 per cent during the period.

 

At 09:36 AM, ITI was quoting 8 per cent higher at Rs 287.40, as compared to the 0.06 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped over three-fold. A combined 15.1 million equity shares changed hands on the NSE and BSE. The stock had hit a 52-week high of Rs 384.35 on January 17, 2024.

 

Public sector telecom company BSNL had invited tenders for the design, supply, construction, installation, upgradation, operation and maintenance of Middle Mile Network of BharatNet in 16 Packages/Circles.  The BharatNet Phase-3 project is envisaged for the development (creation, upgradation and operation and maintenance) of middle mile network of BharatNet on design, build, operate and maintain (DBOM) model.

 

ITI, along with its consortium partners, has emerged as the L1 in BharatNet phase-3 project in the states of Himachal Pradesh for package no. 8, and in West Bengal and Andaman & Nicobar islands for package no. 9, aggregating to a total order value of Rs 3,022 crore, the company said in an exchange filing.

 

The ITI-led consortium has succeeded in cornering these two packages out of the 11 packages for which tender documents have been opened till now, out of a total of 16 packages that cover the entire length and breadth of the country, it added.

 

Moreover, with existing sectors like telecommunications, defence electronics industrial, IT&BA and automobile, the advent of disruptive technologies like electric vehicles, 5G, drones, medical and agriculture technology, IoT, satellite broadband, defence, space and power electronics among others have emerged as market segments with faster innovation.  In that backdrop, India is evolving as an innovation-driven R&D destination for global companies.

 

The AatmaNirbhar Bharat Abhiyan of the Indian government, further promotes local production and aims to implement a phased manufacturing program for designated product segments in digital communication technologies.  The growth in EMS market presents an opportunity for design-led manufacturing, which has been given a boost by way of incentives under schemes like PLI.  Further, the Department for Promotion of Industry and Internal Trade (DPIIT), in its 2018 notification, had issued guidelines to adhere to public procurement by providing preference to Make in India products and preference to the local suppliers in the procurement of electronic and communications related products and services.  This policy and guideline will unfold many opportunity areas and boost local manufacturing in the telecom product and service sectors, ITI said in its FY24 annual report.