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Last Updated : Jan 20, 2020 03:36 PM IST | Source: Moneycontrol.com

ITI follow-on public offer opens on Jan 24, may raise Rs 1,600 cr

The company in its BSE filing on January 19 said the meeting of the board of directors of the company is scheduled on January 22 to consider and approve price band for FPO.

 
 
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State-owned telecommunications technology company ITI Limited will launch its follow-on public offer on January 24.

The public offering comprises a fresh issue of up to 18 crore shares and additional issue of up to 18 lakh equity shares constituting 1 percent of the net issue which shall be reserved for allocation and allotment to eligible employees on a proportionate basis.

The FPO will close for subscription on January 28. The price band for the FPO will be decided on Wednesday.

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The company in its BSE filing on January 19 said the meeting of the board of directors of the company is scheduled on January 22 to consider and approve price band for FPO.

Merchant bankers' sources told Moneycontrol that the company is likely to raise around Rs 1,600 crore through follow-on public offer.

The objective of the issue would be to utilize the net proceeds for funding its working capital requirements (Rs 642.48 crore) and repay loans in full or partially (Rs 607.29 crore), taken by the company.

Going forward, ITI looks to diversify its products and services and leverage their relationship with GoI and various public sector units, modernize its infrastructure and technology as well as team up with innovative technology leaders and startups to support the Make in India and Digital India fillip of the government.

ITI has manufacturing facilities in Bengaluru, Naini, Rae Bareli, Mankapur and Palakkad along with an R&D centre in Bengaluru.

The company has a diverse suite of products including defence security encryption products; optical and data network products and passive infrastructure products such as gigabit passive optical network and manage leased line products; multi-capacity encryption units, electrical products such as smart energy meters, smart cards, solar panels, set-top boxes and mini personal computers and Internet of Things products.

It has a order book of Rs 11,051.12 crore as on December 31, 2019 which includes various GoI projects such as ASCON, BharatNet, network for spectrum, smart energy meters, space programs and E-Governance projects.

BOB Capital Markets, Karvy Investor Services and PNB Investment Services will act as the book running lead managers to the issue.

The stock was quoting at Rs 103.50, up Rs 0.35, or 0.34 percent on the BSE at 1452 hours IST. It had rallied 28 percent in last three months.

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First Published on Jan 20, 2020 03:36 pm
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