ITI Limited Finalizes ₹914 Crore Bengaluru Land Sale to CGST, Clears Debt via Proceeds

State-owned telecom equipment manufacturer ITI Limited has officially completed the monetization of its 21-acre prime land parcel at K.R. Puram, Bengaluru, to the Central Goods and Services Tax (CGST) Department, Government of India, for a total consideration of ₹914.31 crores.

The public sector undertaking (PSU) utilized the bulk of the net proceeds to substantially pare down its fund-based debt obligations with its banking consortium. The definitive Sale Deed was executed and registered with local state authorities on July 2, 2026.

Transaction Flow and Debt Reduction

The financial execution of the transaction involved a structured payout that allowed ITI Limited to clear a massive portion of its outstanding bank borrowings:

Gross Consideration: The total transaction size, finalized and approved by the National Land Monetization Corporation (NLMC), stood at ₹914.31 crores.

Statutory Deductions: The net payout factored in a Tax Deducted at Source (TDS) deduction of ₹9.14 crores and transaction charges payable to the NLMC amounting to ₹2.36 crores.

Consortium Debt Paydown: From the net total received from the CGST East Commissionerate, Bengaluru, ITI Limited directly remitted ₹902.81 crores to its consortium of lending banks to repay outstanding fund-based borrowings.

De-mortgaging and Clear Title Clearance

Because the 21-acre land parcel at Krishnarajapuram Village (Bengaluru East Taluk) originally formed part of the immovable properties mortgaged to secure the company's working capital, a multi-stage release was required:

Banking NOCs: Following the direct remittance of ₹902.81 crores to the lending banks, the consortium issued formal "No Objection Certificates" (NOCs) to conclude the transaction.

Release Deed Execution: Armed with the bank clearances, SBICAP Trustee Company Limited (acting as the Security Trustee for the lenders) executed a formal Release Deed on June 19, 2026, legally lifting the mortgage charge.

Registration: The lifting of the mortgage gave ITI Limited a clear, marketable title, culminating in the formal execution and registration of the Sale Deed in favor of the Union Government's CGST department on July 2, 2026.

Shares of ITI Limited was last trading in BSE at Rs. 298.75 as compared to the previous close of Rs. 299.90. The total number of shares traded during the day was 16856 in over 502 trades.

The stock hit an intraday high of Rs. 303.50 and intraday low of 297.20. The net turnover during the day was Rs. 5067291.00.

Source : Equity Bulls

Keywords

ITI INE248A01017 LandSale Bengaluru