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State-owned ITI again extends FPO issue period

Jan 31, 2020, 17:25 IST
PTI
New Delhi, Jan 31 () State-owned ITI on Friday extended the issue period for its ongoing follow-on public offer (FPO) by four working days till February 5 following lukewarm response from investors.

This is the second time the company has extended its issue period.

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Prior to this, the company, on January 28, extended the issue period for its FPO by three days till January 31. Also, it had reduced the price band to Rs 71-77 per share for its FPO from Rs 72-77 apiece.

The FPO, which opened on January 24, was initially scheduled to close on January 28.

The company's follow-on public offer comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares reserved for employees.

The issue was subscribed 58 per cent till 1645 hours on Friday.

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"The FPO committee has decided to extend the bid/issue period by four working days. The bid/ issue closing date is now February 5, 2020. The price band will remain the same -- floor price of Rs 71 per equity share and the cap price of Rs 77 per equity share," ITI said in a statement.

At the upper end of the price band, the company is expected to mop-up Rs 1,400 crore.

Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company and for general corporate purpose.

The public issue is being managed by BOB Capital Markets, Karvy Investor Services and PNB Investment Services.

The FPO will help the company meet markets regulator Securities and Exchange Board of India''s (Sebi) requirement of minimum 25 per cent public shareholding.

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ITI is into manufacturing of a diverse range of information and communication technology (ICT) products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments. SP ANS ANS

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