President of India-Backed Telecom Stock Hit Upper Circuit After Initiating State Network Operations Center (S-NOC) for BharatNet Phase-III Project in Himachal Pradesh

The stock is up by 21.24 per cent from its 52-week low of Rs 210.20 per share.

On Wednesday, shares of ITI Ltd hit a 5 per cent upper circuit to Rs 254.85 per share compared to the previous closing of Rs 242.75 per share. The shares of the company saw a spurt in volume by more than 1.43 times on the BSE.

ITI Limited, India's pioneering PSU in the telecom manufacturing sector since independence, has commenced crucial work on the State Network Operations Center (S-NOC) for the significant BharatNet Phase-III Project in Solan, Himachal Pradesh. This initiative is being undertaken in close coordination with BSNL. The S-NOC will serve as a central hub, enabling ITI Limited to effectively monitor and manage the performance, security, and overall availability of the project's extensive network infrastructure. This centralized oversight is paramount to ensuring the efficient and reliable delivery of services under the BharatNet Phase-III endeavour.

This development follows ITI Limited's successful bid in November 2024, where they emerged as the L1 contractor for BharatNet Phase-III in Himachal Pradesh (Package No. 8), as well as in West Bengal and the Andaman & Nicobar Islands (Package No. 9), securing a total order value of Rs. 5050 Cr. The BharatNet Phase-III Project is designed for the development of the Middle Mile Network on a Design, Build, Operate and Maintain (DBOM) model and is financially supported by the Universal Service Obligation Fund (USOF), an initiative of the Government of India.

The formal initiation of the S-NOC and the commencement of the BharatNet Phase-III Project in Himachal Pradesh were marked by a function held at the BSNL Office in Solan. Key figures present at the event included Mr. Rajesh Rai, Chairman and Managing Director of ITI Limited, and Mr. Anil Kumar Gupta, CGM of BSNL, who jointly inaugurated the S-NOC. The Government of India's BharatNet Phase-III Project aims to establish IP-MPLS Ring Network connectivity to all gram panchayats nationwide. In Himachal Pradesh, this modern S-NOC will specifically monitor the connectivity of 3,615 gram panchayats, facilitating last-mile connectivity for consumers by linking them to 91 block headquarters via high-speed 10 Gbps bandwidth, which will then connect to the BSNL IP-MPLS Ring Network and extend to 15,538 villages across the state, requiring the laying of approximately 20,000 Kilometers of optical fiber cable.

About the Company

ITI Limited is a major organization in the telecommunication industry that deals with the manufacturing, trading and servicing of telecommunication equipment. The company makes about 78 per cent of its sales from turn key projects, which include large projects like BharatNet and ASCON. Service offerings make up 19 per cent of sales, including contract manufacturing and equipment testing.

Manufacturing and trading is 3 per cent, with products like energy meters and IoT devices. The order book of ITI Limited is strong with major projects like Mahanet and Gujnet under BharatNet Phase-2. ITI is a preferred vendor to BSNL and Indian Defence services, state governments and PSUs, being the major clients. ITI has six manufacturing plants in India and has received a large amount of capital from the government for its revival.

The company has a market cap of over Rs 24,000 crore. As of December 2024, the promoters (President of India & Government of Karnataka) own a 90 per cent stake, FIIs own 0.06 per cent, DIIs own 0.04 per cent, the Government own 7.90 per cent and the public owns a 2 per cent stake. The stock is up by 21.24 per cent from its 52-week low of Rs 210.20 per share. Investors should keep an eye on this mid-cap telecom stock.

Disclaimer: The article is for informational purposes only and not investment advice.