ITI hits the roof

ITI jumped 10% to Rs 63.40 on reports that it is seeking Rs 2,000 crore government bailout package.

Meanwhile, BSE Sensex was up 214.70 points or 1.08% to 20,068.62.

On BSE, 1.47 lakh shares of the scrip were traded, with pending buy orders for 1.18 lakh shares at the 10% upper circuit. The stock had an average daily volume of 6.14 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 63.40 and low of Rs 59.50 so far during the day. The stock had hit a 52-week high of Rs 70.95 on 15 November 2007 and 52-week low of Rs 35.85 on 24 August 2007.

The scrip had outperformed the market over the past one month till 24 December 2007, rising 7.86% as compared to the Sensex's return of 5.31%. It outperformed the market in the past one quarter, surging 31.77% as compared to the Sensex's rise of 17.48%.

The mid-cap telecom equipments manufacturer has equity share capital of Rs 288 crore. Face value is Rs 10 per share.

As per reports, ITI (formerly known as Indian Telephone Industries) will utilise the funds to wipe out accumulated losses and to obtain working capital for telecom equipment manufacturing. Three years back, the Union government had given Rs 1,025 crore financial aid to ITI.

Government of India owns 92.87% of ITI (as at end September 2007). ITI has six manufacturing plants spread across Bangalore, Mankapur, Rae Bareli, Naini, Srinagar and Palakkad. The company manufactures a wide-range of equipments, including electronic switching, transmission equipment, access products, V-sat equipment and telephone instruments.

ITI reported lower net loss of Rs 124.01 crore in Q2 September 2007 as compared to net loss Rs 145.79 crore in Q2 September 2006. Net sales rose 64.20% to Rs 321.38 crore in Q2 September 2007 over Q2 September 2006.