ITI FPO Deadline Extended; Price Band Revised

ITI Limited's (formerly known as Indian Telephone Industries) follow-on public offer (FPO) that hit the capital markets on 24 January has been extended by three days. The closing date of ITI FPO has been postponed from 28 January to 31 January.

The public sector electronics and telecom gear maker also revised the public offer's price band to Rs 71-77 per share from the earlier Rs 72-77 bracket.

ITI: Quotes, News

BSE 260.454.7 (-1.80%)

NSE 260.604.55 (-1.75%)

Ahead of the FPO, the company said that it intends to raise about Rs 1,400 crore, of which Rs 607 crore shall be utilised to repay loans.

The issue includes a fresh public offer of 18.18 crore shares with the face value of Rs 10 each. One percent of the sale is reserved for ITI's employees.

On Tuesday, the previously set last date for the FPO, the company's shares closed 6 percent lower at Rs 83.25 apiece.
The company also said that its board meeting scheduled on Wednesday to fix the issue price stands postponed.

As of 5 pm on Tuesday, the Rs 1,400-crore FPO was subscribed 49 percent, exchange data showed.

Of the Rs 1,400 crore that the company intends to raise from the issue, proceeds will be used to finance working capital (Rs 642.48 crore), repayment of high-cost loans (Rs 607.29 crore), and general corpus fund needs (around Rs 135 crore).

The book running lead managers to the issue are BOB Capital Markets Ltd, Karvy Investor Services Ltd and PNB Investment Services Ltd.

KFin Technologies (formerly known as Karvy Fintech) is the registrar to the issue.

Shares are proposed to be listed on BSE and NSE.