GTL Infra Share Price: LIC Backed Penny Stock Under Rs 5 Soars 40% In One Week - Reason

Shares of GTL Infrastructure Ltd continued their upward movement for the second consecutive session, rising nearly 42% over 11^th (Wednesday) and 12^th (Thursday) June. The stock rallied 15% on Thursday to close at Rs 2.16 on the BSE, building on a 12.5% rally the previous day.

GTL Infra, a LIC-backed penny stock currently trading at Rs 2 levels, has surged 40% in just one week, driven by heavy trading interest and LIC’s 3.05% stake in the company. Notably, Life Insurance Corporation of India holds a significant 3.05% stake, owning over 39 crore shares in the company.

Also Read: BSNL Set for Big Return With 5G Push: Should Jio, Airtel, And Vi Watch Out? | Republic World

No company specific driving factors

Notably, the stock shot up without any formal communication or announcement from the company. This absence of business has led to speculation in the stock rally is being driven more by investor sentiment, momentum trading, and a renewed interest in small-cap stocks within the telecom infrastructure space.

Buoyancy in telecom industry

As per media reports, sector-specific optimism may also be contributing to the rally. The telecom infrastructure space has witnessed a lot of investor attention, especially in the context of India’s expanding digital infrastructure and the anticipated rollout of advanced 5G services.

Trading volumes

On Thursday, GTL Infra emerged as the most actively traded stock on the NSE, with more than 49 crore shares changing hands. A day earlier, over 3.9 crore shares were traded—far above the company’s one-month daily average of 87 lakh shares. 

About the company

GTL Infrastructure Limited (GTL Infra) is a leading Indian telecom tower company that builds, owns, and operates passive telecom infrastructure, primarily telecom towers. The Navi Mumbai-based company facilitates 2G, 3G, and 4G network services for various telecom operators by providing shared infrastructure. It has a significant portfolio of towers across India, enabling telecom operators to focus on their core activities by offloading capital expenditure.