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ITI extends FPO closing date to Feb 5, keeps price band at Rs 71-77/sh

January 31
21:33 2020

State-owned telecommunications technology company ITI (erstwhile Indian Telephone Industries) on January 31 extended the subscription period for the second time.

The public issue will now close on February 5 and the price band will remain the same at Rs 71-77 per share.

“The FPO Committee has decided to extend the issue period by four working days. The issue closing date is now February 5, 2020. The price band will remain the same i.e. floor price of Rs 71 per share and the cap price of Rs 77 per share,” the company said in its BSE filing.

“There is an ongoing banking strike in the country and as per SEBI regulations, in case of any force majeure, banking strike or similar circumstance, the issuer may extend the issue period for a minimum of three working days,” it reasoned.

Even after the change in closing date and price band on January 28, the Rs 1,400-crore FPO was subscribed only 54 percent so far, against 49 percent on January 28.

Its earlier price band was Rs 72-77 per share.

The issue has received bids for 9.8 crore equity shares against offer size of 18.18 crore shares, the exchange data showed.

The company intends to use the proceeds for funding its working capital requirements as well as repayment of existing debt.

The government’s shareholding will be reduced to 74.96 percent, from 90 percent currently after the issue.

The stock continued to be under pressure, falling more than 16 percent, especially after the announcement of price band for FPO.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

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