ITI sets FPO price band of Rs 72-77 per share

State-owned ITI on Wednesday fixed a price band of Rs 72-77 a share for its follow-on public offer, which will hit the capital markets on Friday.

The FPO comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares will be reserved for employees.

The issue will open on January 24 and close on January 28.

At the higher end of the price band at Rs 77 per share, the company will garner Rs 1,386 crore from the FPO, while at the lower end at Rs 72 a share, it will raise Rs 1,296 crore, the company said in a statement.

The price band has been fixed at a discount of 20 per cent from Wednesday's closing price. On the BSE, ITI stock settled at Rs 99.80 and on the NSE at Rs 99.75.

Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company and for general corporate purposes.

The public issue is being managed by BOB Capital Markets, Karvy Investor Services and PNB Investment Services.

The FPO will help the company meet Sebi's requirement of minimum 25 per cent public shareholding.

ITI is into manufacturing of a diverse range of Information and Communication Technology (ICT) products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.

The company has a strong order book of Rs 11,051.12 crore as in December 2019, which includes various government projects such as ASCON, BharatNet, Network for Spectrum, smart energy meters, space programs and e-governance projects.

Going forward, ITI said it is looking to diversify its products and services and leverage its relationship with the government and various public sector units, modernise its infrastructure and technology as well as team up with innovative technology leaders and startups to support Make in India and Digital India initiatives of the government.