ITI's follow-on offering sees 6% subscription at end of first day

The follow-on offering (FPO) of ITI Ltd, a state-owned tech firm operating in the telecom sector, was subscribed 6 per cent on Friday. The FPO has got bids for 10 million shares against 181.8 million on offer. The price band for the FP0 is Rs 72-77 per share. 

Shares closed at Rs 91 on Friday, down 2 per cent. They have declined 10 per cent since the announcement of the FPO price. However, the stock trades at a premium of 15 per cent to its issue price. At the top end, the company will be able to mobilise Rs 1,386 crore to fund its working capital requirements and pare debt. 

“Further Public offering...of ITI Ltd comprising fresh issue of up to 180,000,000 equity shares for cash...and an additional issue of up to 1,800,000 equity shares constituting 1 per cent of the net issue to be reserved for allocation and allotment on a proportionate basis to eligible employees...” said the filing.