ITI follow-on public offer subscribed 49% on third day

Representative Image

The follow-on public offer of state-owned telecommunications technology company ITI subscribed 49 percent on January 28, the third day of bidding.

The Rs 1,400-crore further public offer (FPO) has received bids for 8.82 crore equity shares against offer size of 18.18 crore shares, as per data available on the NSE.

The reserved category for retail investors has seen a 92 percent subscription, while that of qualified institutional buyers is 49 percent and non-institutional investors at 16 percent.

Due to a muted response, the company had earlier today revised the offer price band to Rs 71-77 per share in consultation with the merchant bankers.

It also extended the closing date for FPO by three days to January 31, 2020.

The company intends to use issue proceeds to fund its working capital requirements as well as repay existing debt.

After the issue, government shareholding in the company will reduce to 74.96 percent from 90 percent.

ITI has 5 manufacturing units located at Mankapur, Bengaluru, Palakkad, Naini and Raebareli and an R&D center in Bengaluru.

The company's order book was at Rs 11,051.12 crore as of December 2019, of which 29.09 percent was in large turnkey projects, 57.87 percent in AMCs and 13.05 percent in product and services.