ITI withdraws Rs 1,400 crore FPO after extending issue deadline twice

After extending its issue deadline twice, state-owned ITI on Wednesday withdrew its follow-on public offer citing "prevailing market conditions".

The announcement came after ITI extended the issue period for its follow-on public offer (FPO) twice amid lukewarm response from investors.

At the upper end of the price band, the company expected to mop-up Rs 1,400 crore.

As of Wednesday, the issue was subscribed 62 per cent, as per data available with the NSE.

"Pursuant to a resolution passed by the FPO committee of the company dated February 5, 2020, 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," the company said in a statement.

On January 31, ITI had extended the issue period for its FPO till February 5. Prior to this, the company on January 28 extended the issue period for its FPO by three days till January 31. Also, it had reduced the price band to Rs 71-77 per share for its FPO from Rs 72-77 apiece.

The FPO, which opened on January 24, was initially scheduled to close on January 28.

The company's follow-on public offer comprised a fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares was reserved for employees.

ITI is into the business of manufacturing of a diverse range of information and communication technology products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.