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ITI shares rally 9% as co withdraws Rs 1,400 crore FPO

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

ETMarkets.com|
Last Updated: Feb 06, 2020, 04.03 PM IST
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On January 31, the company had extended the issue period for its FPO till February 5.
Shares of ITI climbed over 9 per cent after the company decided to withdraw its Rs 1,400 crore follow-on-public offer (FPO), citing market conditions.

“The company has decided to withdraw the issue, due to the prevailing market conditions, in consultation with the Book Running Lead Managers to the Issue, being BOB Capital Markets, Karvy Investor Services and PNB Investment Services,” ITI said in a communication to exchanges.

The public sector electronics and telecom gear maker had earlier extended the closing date of the offer twice and also revised the price band, but the issue was subscribed 62 per cent as of 4.45 pm on Wednesday. ITI had planned to raise Rs 1,400 crore from the issue.

On January 31, the company had extended the issue period for its FPO till February 5. 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 comprised a fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares was reserved for employees.

ITI is into the business of manufacturing a diverse range of information and communication technology products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.

The shares of the company closed 6.71 per cent higher at Rs 89.80 on BSE.
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