ITI shares rise 13% on plans to monetise land parcels to raise nearly Rs 3,500 crore

ITI shares rise 13% on plans to monetise land parcels to raise nearly Rs 3,500 crore

Shares of ITI Ltd rose 13% to an over two-week high of Rs 331.75 apiece on December 19 and snapped four-day losses a day after Moneycontrol reported that the company plans to raise around Rs 3,500 crore through land monetisation. The company has identified 91.43 acres in Bengaluru for monetisation, a move aimed at clearing the debt and employee dues Union communications ministry unit.

Replying to a question by Bengaluru South MP Tejasvi Surya in the Lok Sabha on December 17, Union minister of state for communications Pemmasani Chandrasekhar said the parcels are located in and around the ITI Township in Krishnarajapura in the Bengaluru Urban District.

“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,” Chandrasekhar said.

There are four parcels, the biggest of which is a 44.03-acre plot valued at Rs 1,651.20 crore. Another 21-acre parcel in the b-area of ITI Township, proposed to be transferred to Goods and Services Tax (GST) department, is estimated to fetch Rs 823.20 crore. ITI also plans to monetise a 10.28-acre plot in B Narayanapura village valued at Rs 357.57 crore and a 16.12-acre plot in the ITI township estimated at Rs 641.17 crore.

However, the stock saw profit booking later in the trading session and closed 5.3% higher at Rs 309.85. Over 32 million shares of the company changed hands on the NSE as compared with 242,000 shares traded in the previous day.

The minister said ITI’s order book stands at Rs 18,746 crore. In FY25, it reported a turnover of Rs 4,323 crore and posted a positive EBITDA of Rs 25 crore but reported a net loss of Rs 233 crore.

Its bank borrowings stand at Rs 1,325 crore, while statutory and retirement dues, including pending salaries, amount to Rs 339 crore.

ITI’s workforce has steadily declined over the past five years. As of December 1, the company had 1,240 employees, including 623 regular and 617 contractual staff, down from 2,542 employees in 2021.