ITI FPO subscribed 57% on 8th day, retail portion fully booked
The further public offering (FPO) of ITI, priced at Rs 1,400-crore, has been subscribed 57 percent on February 3, its eighth day.
The public issue has received bids for 10.44 crore equity shares against its FPO size of 18.18 crore shares, data from the exchange showed.
The portion set aside for retail investors subscribed 1.02 times, while that of qualified institutional buyers was 59 percent and non-institutional investors at 17 percent.
Due to a muted response, the state-owned telecommunications technology company, on January 28, revised the offer price band to Rs 71-77 per share, up from Rs 72-77 earlier in consultation with the merchant bankers.
On January 31, it also extended the closing date for FPO second time by three more days to February 5, 2020, while keeping the price band unchanged.
The company intends to use the issue proceeds to fund its working capital requirements, as well as repay existing debt.
After the issue, government shareholding in the company will reduce to 74.96 percent from 90 percent.
Meanwhile, ITI on February 3 said the meeting of the board of directors is scheduled on February 6 to consider the issue price for the equity shares to be allotted pursuant to the issue.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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