ITI up 7% on govt's Rs 130cr nod for employees' salaries

Shares of Indian Telephone Industries (ITI), a state-run sick company, surged 7% in early trade today after the government approved the financial assistance of Rs 130 crore.

"The Cabinet Committee on Economic Affairs has approved the financial assistance of Rs 130 crore in the form of grants-in-aid to ITI, for mitigating the hardship being faced by the company in paying salary to its employees for the next four months," Finance Minister P Chidambaram said. He said the grant would ensure that the employees of the firm would get their salary in time and be motivated to work in the company, "which is on a slow and steady come back trail from being a sick company".

The cabinet also okayed model pact for infrastructure debt funds. Meanwhile, the ban on export of edible oil will continue.

At 09:24 hrs ITI was quoting at Rs 27.30, up Rs 1.75, or 6.85%. It has touched an intraday high of Rs 27.90 and an intraday low of Rs 26.15. 
 
It was trading with volumes of 266,484 shares. In the previous trading session, the share closed up 7.13% or Rs 1.70 at Rs 25.55. 
 
The share touched its 52-week high Rs 32.00 and 52-week low Rs 16.15 on 16 March, 2012 and 20 December, 2011, respectively. 
 
Currently, it is trading 14.69% below its 52-week high and 69.04% above its 52-week low. 
 
Market capitalisation stands at Rs 786.24 crore.