ITI shares surge over 21% in three sessions; here's why

Shares of the government of India owned telecom equipment and accessories maker, ITI Ltd., rose as much as 21.46% in the last three trading sessions to hit an intraday high of ₹338.35 on the National Stock Exchange on Wednesday, May 28. In intraday deals, ITI shares rose as much as 9.40% on top of yesterday's 10% surge.

ITI shares were witnessing heavier than usual trading volumes as 4.35 lakh shares changed hands on the BSE as against an average of 1.31 lakh shares traded daily in the past two weeks.

On the National Stock Exchange, trading volumes spiked by 2.8 times to 76.75 lakh shares against an average of 27.45 lakh shares.

ITI's net loss sharply narrowed to ₹4.38 crore in January-March quarter as against loss of ₹239 crore in the same period last year. The loss narrowed on the back of other income of ₹35 crore.

ITI's revenue from operations jumped by 74% to ₹1,046 crore from ₹601 crore in the year-ago period. Its total expenses also registered an uptick as its total expenses jumped 35% to ₹1,148 crore from 850 crore in the corresponding period a year earlier.

"The Company is currently under a revival plan after it was referred to the BIFR and declared a sick company. The Cabinet Committee on Economic Affairs (CCEA) approved the revival plan based on the recommendations of the Board for Reconstruction of Public Sector Enterprise (BRPSE) which involves financial assistance of ₹4,15,679 lakhs, of which the Company as of date has received ₹3,02,535 lakhs," ITI said in an exchange filing.

As of 1:46 pm, ITI shares traded 8.46% higher at ₹335.25, outperforming the BSE500 index which was trading on a flat note.