ITI withdraws Rs 1,400-cr FPO due to prevailing market condition
State-owned telecommunications technology company ITI Limited decided to withdraw its further public offering due to market conditions that prevailed on February 5, its last day of bidding.
The Rs 1,400-crore public issue was subscribed 62 percent despite extending the subscription period twice since its opening, and reducing the price band to Rs 71-77, down from Rs 72-77 earlier.
The issue was supposed to close on January 28, which then extended to January 31 and then to February 5.
“Pursuant to a resolution passed by the FPO committee of the company, 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 its BSE filing.
The company had filed the draft red herring prospectus on September 27, 2018 with the Securities and Exchange Board of India, and its red herring prospectus on January 17, with the Registrar of Companies.
“As intimated by way of letter dated January 31, 2020, the issue closing date in relation to the issue was identified as February 5, 2020,” company said.
The public issue received bids for 11.24 crore equity shares against its FPO size of 18.18 crore shares, data from the exchange showed.
After the issue, the government’s shareholding in the company was about to reduce to 74.96 percent, down from 90 percent.
The ITI’s FPO was a part of government’s FY20 divestment programme. The government, so far, raised little over Rs 18,000 crore through stake sale against the target amount of Rs 1.05 lakh crore.
As a result, it reduced the current financial year target to Rs 65,000 crore and targets for more than Rs 2 lakh crore of divestment in FY21.Exclusive offer: Use code “BUDGET2020” and get Moneycontrol Pro’s Subscription for as little as Rs 333/- for the first year.