ITI (erstwhile Indian Telephone Industries), the state-owned telecommunications technology company, revised its further public offer's price band to Rs 71-77 per share on January 28, the last day of bidding, due to muted response.
Its earlier price band was Rs 72-77 per share. The company in consultation with merchant bankers also extended the closing date for FPO by three days to January 31, 2020.
"ITI, in its FPO Committee meeting on January 28, revised its price band to Rs 71-77 per share. We have revised issue period and extended it by three days. The bid/ issue closing date will now be January 31, 2020," the telecommunications technology company said in its BSE filing.
The Rs 1,400-crore further public offer (FPO) has been subscribed 48 percent on January 28, the exchanges data showed.
The issue has received bids for 8.8 crore equity shares against offer size of 18.18 crore shares.
The company intends to use the proceeds for funding its working capital requirements as well as repayment of existing debt.
The government's shareholding will be reduced to 74.96 percent, from 90 percent currently after the issue.
ITI has order book of Rs 11,051.12 crore as of December 2019, of which 29.09 percent comprises large turnkey projects, 57.87 percent comprises AMCs and 13.05 percent comprises other product and services orders.
It has 5 manufacturing units located at Mankapur, Bengaluru, Palakkad, Naini and Raebareli. It also has an R&D center in Bengaluru.
The company enjoys established relationships with customers such as Bharat Sanchar Nigam (BSNL), Bharat Broadband Network (BBNL), Mahanagar Telephone Nigam (MTNL), Indian Army, Defence etc.
The company is also engaged in some government projects such as ASCON, BharatNet, Smart Energy Meters, and E-Governance Projects.
The stock continued to be under pressure, falling more than 19 percent in last seven days, especially after the announcement of price band for FPO.