In stark contrast to the overall market trend, shares of public sector enterprise ITI Limited surged 30% in two days after announcing a major partnership with Intel to manufacture laptops and microcomputers.
The stock rose 20% after announcing the Intel deal on Monday and gained another 13% on Tuesday to hit a new 52-week high of 172.80 rupees. The stock was trading at Rs 169.10 as of 11 am IST, valuing the company at Rs 16,248 crore amid weakness in most other equity markets.
The company announced the launch of its SMAASH brand of proprietary laptops and microcomputers. As a result, the company’s shares closed at Rs 149.40 on the exchanges on Monday, a new 52-week high, as compared to Friday’s close of Rs 124.50.
The two flagship products – laptops and mini PCs – are designed under a design and manufacturing memorandum of understanding with Intel Corporation, the company said in a release.
Additionally, the PSU recently won two tenders from KITE (Kerala Infrastructure and Technology) to supply around 9,000 laptops to government schools in Kerala.
ITI is a telecommunications company and multi-unit central public sector enterprise. The company has manufacturing facilities at six locations (Bengaluru, Naini, Rabareilly, Mankapur, Srinagar and Palakkad) and an in-house R&D center in Bengaluru.
In FY23, ITI recorded revenue of Rs 1,395 crore but suffered a loss of Rs 360 crore due to higher expenses.