NEW DELHI: The Cabinet Committee on Economic Affairs today approved transfer of shares by sick PSU ITI Ltd to Special National Investment Fund to meet the Sebi 's minimum public shareholding requirement. "However, ITI Limited is currently a sick company and, therefore, may not get proper valuation if it is disinvested at this stage. The PSU incurred accumulated losses to the tune of Rs 5,166 crore in financial year ended March 31, 2015.The financial position of ITI is not very sound. "In order to fulfil Sebi's requirement of minimum public shareholding for listed companies, equity stake of government will have to be disinvested to bring its stake back to 90 per cent," the statement said.Apart from this, ITI is required to comply with SEBI's requirement of minimum 25 per cent public shareholding by August 2017. It is hoped that with the implementation of revival plan, the company's position will improve and the value of the shares of the company may also increase," the statement said.Shares of ITI closed at Rs 34.15 a piece, up by 18.78 per cent compared to previous close, at BSE today.

Source: Economic Times July 13, 2016 12:11 UTC