ITI shares surge over 12% on emerging lowest bidder for BharatNet project worth ₹4,559 crore

ITI Ltd shares surged more than 12% on Monday, November 11, a day after the state-owned telecom equipment manufacturing company said it had emerged as the lowest bidder (L1) for three packages of the BharatNet Phase-3 project worth ₹4,559 crore.

As the L1 bidder, ITI Ltd will undertake Package No 15, which covers the northeastern states of Arunachal Pradesh, Nagaland, and Manipur, valued at ₹1,537 crore. It was also awarded Package No 8 for Himachal Pradesh and Package No 9 for West Bengal and the Andaman and Nicobar Islands, bringing the combined value of these packages to ₹3,022 crore, ITI said in a stock exchange filing on November 10.

The BharatNet Phase-3 project, spearheaded by BSNL, is a significant initiative to improve digital connectivity across India.

Total project value amounts to ₹ 4,559 crore, solidifying ITI's position as a key player in India's digital infrastructure expansion, the company informed the bourses.

Following the announcement, shares of ITI Ltd soared as much as 12.25% to hit an intra-day high of ₹340.8 apiece on the BSE. However, the stock pared some of early gains to trade 11.66% higher at ₹339 apiece on the BSE at 10:58 am. It was up 8.7% at 11.40 am.

The project is divided into 16 packages, spanning every state and union territory, and involves the design, supply, construction, and maintenance of a middle-mile network under a Design Build Operate and Maintain (DBOM) model.

"We are ecstatic to have emerged as L1 for yet another package of the prestigious BharatNet Phase-3 Project in the states of Arunachal Pradesh, Nagaland, and Manipur. This is an inflection point for ITI, and my whole team is excited to make the company shine even brighter," Rajesh Rai, Chairman and Managing Director of ITI Ltd, said.

He highlighted the challenges and opportunities associated with executing these projects in challenging terrains like the Andaman and North East region.

"Emerging as L1 for three major packages in these difficult terrains is not only exciting but also presents challenges for the company. My team is fully inspired to deliver excellence yet again,” he added.

This major contract win follows another recent achievement for ITI Limited, which was awarded a ₹300 crore contract from the Bihar Renewable Energy Development Authority (BREDA) to supply and install 100,000 solar street lights in Bihar.

On November 8, ITI Ltd announced that a consortium led by the company, in partnership with a leading telecom manufacturing company, has emerged as the lowest (L1) bidder for a BharatNet project valued at ₹3,022 crore.

This project pertains to building the middle-mile network, covering Package No 8 in Himachal Pradesh and Package No 9 in West Bengal and the Andaman & Nicobar Islands.

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