ITI inks deal with DRDO; stock opens 17 per cent higher

The public sector undertaking in telecommunication technology firm, ITI Ltd opened as high as 16 per cent intraday on Monday after it reported production of ventilators. In a fight against the deadly Coronavirus the company set to put in its efforts by manufacturing portable ventilators, the company said in a press release to the stock exchanges.

The press note submitted by the company said that, Defence Research and Development Organisation (DRDO) and ITI would very soon get into a deal to produce portable ventilators. If all things right, the ventilators would be a first of its kind in India. DRDO will be transferring the technology to the company, followed by tests procedures to enable manufacturing of ventilators.

The management is confident about the company’s ability looking and would undertake the manufacturing process at Bengaluru. The company further said that, it will be able to produce portable ventilators within the next 30 to 60 days, though, the component sourcing can be challenging. The signing of memorandum of understanding (MoU) with DRDO is expected in the coming week.

At operating level, owing to a strong order book of nearly Rs 20,000 crore, the company is expected to continue with a growth momentum of touching 35 per cent growth rate.

At the first tick, ITI Ltd traded at Rs 85 per share with gains of 17 per cent on BSE.