ITI to raise Rs 1,600cr for part-debt repayment, working capital needs


PTI, Jan 21, 2020, 4:25 PM IST

Mumbai: State-run electronics and telecom gear manufacturer Indian Telephone Industries (ITI) plans to raise Rs 1,600 crore through a follow-on public offer which will be utilised for partial debt repayment as well as to meet working capital requirements.

The issue will open on January 24 and close on January 28. The price band for the offer will be announced on January 22, a top official of the company said.

“A significant part of this issue, around Rs 607 crore, will be utilised for partial repayment of loans while over Rs 640 crore would be used to fund our working capital requirements,” company’s chairman and managing director RM Agarwal told reporters here.

ITI’s total outstanding debt as on December 31, 2019, stood at Rs 978.38 crore.

The follow-on offer (FPO) comprises a fresh issue of up to 18 crore equity shares and additional issue of up to 18 lakh shares, constituting 1 per cent of the net issue, which would be reserved for employees on proportionate bases.

An FPO is the issuance of additional shares to investors or existing shareholders to raise equity.

“We want to diversify our offerings. In the near future, we would be launching new products and services. Also, we would be leveraging our relationship with the government and various public sector agencies, modernise its infrastructure and technology as well as partner with technology firms to support the make in India and Digital India initiatives,” he added.

The FPO will help the company meet SEBI’s requirement of a minimum 25 per cent public shareholding.

The company has a diverse suite of products including manufactured products like gigabit passive optical network (GPON), managed leased line network (MLLN) products, stand-alone signalling transfer point(SSTP), Wi-Fi access point, radio modem, SMPS, set-top box, defence products, smart energy meters, smart cards, solar panels, mini personal computers, among others.

Besides offering the telecom turnkey solutions and customized support, ITI has a dedicated network system unit for executing turnkey projects for installation and commissioning of telecommunication network.

ITI reported a turnover of Rs 919 crore and a PAT of Rs 168 crore in the third quarter of FY2019-20. The company’s order book as of December 31, 2019, stood at Rs 11,051.12 crore which includes various GoI projects such as ASCON, BharatNet, network for spectrum, smart energy meters, space programs and e-governance projects.

“The strengths of ITI are its diverse products and services offered across sectors, well-established relationships with PSUs, the ministry of Defence and other government and state agencies. With the kind of segments we are entering and the initiatives taken by the government, ITI will be one of the leading technology services provider,” Agarwal said.

ITI has appointed BOB Capital Markets, Karvy Investor Services and PNB Investment Services as the book running lead managers to the issue.

The net issue will have not less than 75 per cent allocation to qualified institutional buyers, not more than 15 per cent to non-institutional bidders and not more than 10 per cent to retail individual bidders.

Shares of ITI ended at Rs 102.85 on BSE, down 0.29 per cent as against the benchmark index Sensex correcting by 0.99 per cent.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

‘Nation First’ key to India’s progress, says President Murmu

Karnataka BJP chief Vijayendra slams Cong govt over Waqf notices to farmers, fund crunch

Man declared dead wakes up before cremation, 3 doctors suspended in Rajasthan

Teen stabs man to death at railway station in Mumbai after quarrel over local train seat

BJP stages protest against Karnataka govt over Waqf properties row

Youth attempts suicide after being humiliated in public for wearing ripped jeans in Belthangady

India crawl to 51 for 4 after losing top-order

Related Articles More

Baku climate talks: The ‘X’ factor that could determine future of Global South

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

Gautam Adani charged in US with USD 250 mn bribery, fraud

India’s GDP growth likely to slip at 6.5 pc, maintains 7 pc estimate for FY25: Icra

RBI cautions public about ‘deepfake’ video of governor being circulated on social media

MUST WATCH

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation

Geethotsava

Naxal Operation


Latest Additions

Centre releases 15th Finance Commission grant for rural local bodies in Karnataka

Kharge confident of Cong and allies coming to power in Maharashtra, Jharkhand

‘Nation First’ key to India’s progress, says President Murmu

Karnataka BJP chief Vijayendra slams Cong govt over Waqf notices to farmers, fund crunch

Priyanka joining forces with Rahul in Parliament will give ‘sleepless nights’ to BJP: Pilot

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.