ITI up over 10%

ITI is doing very well today morning, with the stock opening higher and is currently at Rs.16.55, up 10.25%. Volumes have risen over 13 times.

ITI, which was earlier known as Indian Telephone Industries Ltd, a PSU is up in the green today after the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, approved the revival plan of the company based on the recommendations of the Board for Reconstruction of Public Sector Enterprise (BRPSE). 

The BRPSE has stated that out of Rs 4,156.79 crore, capital grant of Rs 2,264 crore will be given in the form of equity for project implementation (CAPEX) for up-grading manufacturing infrastructure at various units and for new projects. The balance Rs 1,892.79 crore will be financial assistance in the form of grant-in-aid for statutory liabilities and other commitments made by ITI such as redemption of preferential share capital of BSNL/MTNL, arrears due to 1997 pay revision and VRS. 

The revival plan is expected to be implemented over a period of 18 months. With the cleaning of the balance sheet to a certain extent, ITI will be able to raise resources for their operations and compete in the market.