You are here: Home » Markets » News
Business Standard

ITI surges 10% on purchase order of Rs 1,011 crores from GFGNL

The stock surged 10 per cent to Rs 115 on the BSE in early morning trade after the company announced it has received order worth of Rs 1,011 crore from Gujarat Fibre Grid Network Limited.

SI Reporter  |  Mumbai 

A unit of state-owned ITI in Rae Bareli
A unit of state-owned ITI in Rae Bareli

Shares of surged 10 per cent to Rs 115 apiece on the BSE in intra-day trade after the company announced that it has received orders worth of Rs 1,011 crores from (GFGNL).

said it has signed a contract with (GFGNL) for implementing BharatNet Phase II project in one of the two packages in the state of Gujarat.

“The purchase order from is valued at Rs 1011.41 crore towards the capex part of the project, to be completed in a period of one year and Rs 190.04 crore towards operation and maintenance of the network for 3 years after the implementation of the project,” the company said in a regulatory filing.

In the past two weeks, has rallied 25 per cent, as compared to a 2 per cent rise in the S&P BSE Sensex. The stock of state-owned telecom equipment company hit a high of Rs 117 on Thursday, January 17, 2019, in intra-day trade, its highest level since August 31, 2018.

On the sudden spike in price and volumes, ITI clarified to the stock exchanges that the company had submitted bids for the mega tender issued by Bharat Broadband Network Limited (BBNL) for extending last mile wireless connectivity to Indian Citizens in all Gram Panchayats in the Country under the BharatNet Project.

The Company had submitted bids for 15 packages out of 57 packages called for by the vendor. had written to the Company calling for price negotiation after having stood as Ll for 9 packages. Currently, the commercial negotiation between ITI and is in progress, it added.

"As ITI' s prices have still not been accepted by the customer, ITI is restrained from declaring to the stock exchanges on ITI winning the tender. ITI, as well as many other bidders, being the lowest bidders in some of the packages [known only amongst the bidders] and market speculation of this information might potentially be the reason for the increase in the volume of trading of ITI shares," the company said.

As on August 31, 2018, the company has healthy order book valued of Rs 12,112 crores comprising of a diversified products and services.

At 12:09 pm; shares of ITI was up 8 per cent at Rs 113 on the BSE, as compared to 0.59 per cent rise in the S&P BSE Sensex. A combined 6.14 million equity shares changed hands on the counter on the BSE and NSE so far.

First Published: Mon, January 21 2019. 12:12 IST