ITI Ltd's FPO opens on Jan 24, proceeds to fund capital requirements

ITI Ltd on Monday announced the launch of its further public offering (FPO) with the issue set to open on January 24 and close by January 28.

The objective is to utilise net proceeds for funding its working capital requirements during the current financial year and Rs 607 crore to repay loans in full or partially.

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

Equity shares proposed to be issued will be available on the BSE Ltd and the National Stock Exchange (NSE) of India Ltd.

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.

The government-owned company has diverse products and services offered across sectors, well-established relationships with public sector undertakings, the Ministry of Defence and other government agencies.

Its order book stood at Rs 1,105 crore as on December 31, 2019 which included various projects like Army Static Switch Communication Network (ASCON), BharatNet, network for spectrum, smart energy metres, space programmes and e-governance projects.

"Going forward, ITI looks to diversify its products and services, modernise its infrastructure and technology as well as team up with innovative technology leaders and startups to support the 'Make in India' and 'Digital India' initiatives of the government," the company said in a statement.

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