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ITI FPO subscribed 58%; issue to close today

The issue has received the most number of bids at a price of Rs 71-72.

ETMarkets.com|
Last Updated: Feb 05, 2020, 02.58 PM IST
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At a price band of Rs 71-77, the FPO received bids for 10,52,36,400 shares compared with the issue size of 18,18,00,000 units. The issues will close today.
NEW DELHI: The Rs 1,400 crore follow-on public offer (FPO) by state-run ITI was subscribed 58 per cent till 2.30 pm on the last day of the bidding process on Wednesday.

At a price band of Rs 71-77, the FPO received bids for 10,52,36,400 shares compared with the issue size of 18,18,00,000 units. The issues will close today.

By 2.30 pm, the QIB portion was subscribed 59 per cent, while the non-institutional quota was subscribed 18 per cent. The Rs 138.6 crore portion reserved for retail individual investors was subscribed 104 per cent. The employee portion was subscribed 97 per cent.

The issue has received the most number of bids at a price of Rs 71-72.

On January 28, ITI had cut the price band for its FPO to raise up to Rs 1,400 crore, and extended the issue until January 31. The telecom equipment maker cut the price band to Rs 71-77 per share, from Rs 72-77 per share following a tepid response.

The issue was initially scheduled to close on January 28, but was extended for three days to January 31. However, the telecommunication maker further extended the offer period to February 5, citing bank strike.

ITI recently announced its plans around Rs 150 crore investment to scale up its solar panel manufacturing capacity to 90 MW in the next fiscal.

When asked if the company would utilise the funds raised through the FPO for the capacity enhancement in case the funds from the government do not come, Chairman and Managing Director R M Agarwal told PTI: "The FPO proceeds will have to be used towards partial repayment of loans, funding our working capital requirements and general purpose. For our capex, we will have to wait for the ministry to release the funds."

Apart from solar panels, the company is also focusing on manufacturing of LED-based products like LED solar lantern and LED street lights for rural use and LED tube lights and decorative indoor lights for grid connected applications.

The company has executed various turnkey orders for Bharatnet, telecom towers, and Uttar Pradesh police headquarters. It has deployed 15 MW solar power project for the Solar Energy Corporation of India.

It is looking to launch new products under optical and data, defense security, IoT; upgrade and modernise 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.
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