The price band for the FPO will be announced on Wednesday. Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company, and for general corporate purpose. On Monday, shares of ITI ended at Rs 103, down 0.3 per cent. The company has a market cap of Rs 9,226 crore. The public issue is being managed by BOB Capital Markets, Karvy Investor Services and PNB Investment Services. The FPO will help the company meet Sebi’s requirement of minimum 25 per cent public shareholding. The government holding in the company is currently at 90 per cent.
ITI is into manufacturing of a diverse range of Information and Communication Technology (ICT) products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.
The company has a strong order book of Rs 11,051.12 crore as on December 2019, which includes various government projects such as ASCON, BharatNet, Network for Spectrum, smart energy meters, space programs and e-governance projects. ITI said it is looking to leverage their relationship with the Centre and various public sector units, modernise its infrastructure and technology, as well as team up with innovative technology leaders and start-ups.