Asset Monetisation
ITI Executes ₹914.31 Crore Sale Deed for 21 Acres of Land at K.R. Puram, Bengaluru
NSE
iti
BSE
523610
ITI Limited has completed the execution and registration of the sale deed for approximately 21 acres of land at K.R. Puram, Bengaluru, in favour of the CGST East Commissionerate, Bengaluru, for a total consideration of ₹914.31 crore. The transaction has enabled repayment of a significant portion of the company’s fund-based borrowings and the release of the mortgage on the land parcel.
PRICE-SENSITIVE TRIGGER
Event: Execution and registration of sale deed for 21 acres of land at K.R. Puram, Bengaluru.
Type: Asset Monetisation
Impact: Positive
Immediate Effect: The land sale has generated proceeds of ₹914.31 crore, facilitated repayment of bank borrowings, enabled release of the existing mortgage and completed the transfer of clear title to the buyer.
Key Metrics:
- Sale Consideration: ₹914.31 crore
- Fund-Based Borrowings Repaid: ₹902.81 crore
- Income Tax (TDS): ₹9.14 crore
- NLMC Charges: ₹2.36 crore
Highlight:
- ITI completed the ₹914.31 crore land sale and utilised ₹902.81 crore to repay consortium bank borrowings.
What Happened ?
ITI Limited informed the stock exchanges that it has successfully executed and registered the sale deed for approximately 21 acres of land located at K.R. Puram, Bengaluru in favour of the CGST East Commissionerate, Bengaluru, Government of India.
Following receipt of sale proceeds, the company repaid ₹902.81 crore of fund-based borrowings to its consortium lenders. After obtaining No Objection Certificates from the lending banks, SBICAP Trustee Company Limited executed a Release Deed, removing the mortgage over the land and enabling transfer of clear and marketable title to the purchaser.
Key Details
Transaction Highlights:
- Sale deed executed on 2 July 2026.
- Property comprises approximately 21 acres situated at Krishnarajapuram (K.R. Puram), Bengaluru.
- Buyer is CGST East Commissionerate, Bengaluru, Government of India.
- Total sale consideration amounts to ₹914.31 crore.
- Sale deed has been registered with the appropriate state authority.
Debt Reduction:
- Net proceeds were utilised to repay ₹902.81 crore of fund-based borrowings owed to the consortium of lending banks.
- Deductions from sale proceeds included:
- ₹9.14 crore towards Income Tax (TDS).
- ₹2.36 crore towards NLMC charges.
Mortgage Release:
- Consortium lenders issued the required No Objection Certificates (NOCs).
- SBICAP Trustee Company Limited, acting as Security Trustee, executed the Release Deed on 19 June 2026.
- The Release Deed removed the mortgage over the land parcel, enabling transfer of clear and marketable ownership.
Background:
- The company had earlier informed exchanges regarding receipt of the Earnest Money Deposit (EMD) from the CGST Department.
- The transaction had also been disclosed in the audited FY2026 financial statements and Independent Auditor’s Report.
Note:
- The transaction represents completion of the previously announced asset monetisation process for the K.R. Puram land parcel.
Risk Analysis
Summary:
- The land sale strengthens ITI’s balance sheet through debt reduction, although the company also gives up ownership of a strategic land asset. Long-term financial improvement will depend on effective utilisation of the stronger balance sheet and operational turnaround.
Key Risks:
- Loss of future development or monetisation potential of the disposed land.
- Remaining debt obligations and operational challenges are not addressed by this transaction alone.
- Long-term benefits depend on sustained business performance following debt reduction.
Worst Case:
- If operational performance does not improve despite lower borrowings, the financial benefits from the asset monetisation could remain limited.
Risk Level: Low
Company Commentary
- ITI has successfully executed and registered the sale deed for approximately 21 acres at K.R. Puram, Bengaluru.
- The company received total consideration of ₹914.31 crore.
- Sale proceeds have been substantially utilised for repayment of consortium bank borrowings.
- Consortium lenders issued No Objection Certificates enabling release of the mortgage.
- The Release Deed provides clear and marketable title for transfer of the land to the purchaser.
Official Exchange Filing: ITI Limited
