Stock of telecom equipment maker ITI Ltd surged nearly 19 per cent today after the Cabinet Committee on Economic Affairs approved transfer of shares by the sick PSU to Special National Investment Fund to meet Sebi's minimum public shareholding requirement.
The stock jumped 18.78 per cent to settle at Rs 34.15 on BSE. During the day, it zoomed 20 per cent to Rs 34.50.
On NSE, shares of the company skyrocketed 18.37 per cent to end at Rs 34.15.
In terms of volume, 23.40 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day.
"ITI Limited will be allowed to transfer the requisite number of shares from President of India to SNIF as and when Capital grant is released in the form of equity infusion to ITI Limited as part of revival plan approved by Cabinet in February, 2014 to meet for SEBI's minimum 10 per cent Public Shareholding requirement," an official statement said.
ITI will be allowed to meet Sebi's requirement of minimum 25 per cent public shareholding by August 2017.
The financial position of ITI is not very sound. CCEA in its meeting held in February, 2014 approved the proposal to provide financial assistance of Rs 4,156.79 crore for revival of the telecom equipment maker.
