State-owned ITI withdraws Rs 1,300 cr FPO due to poor market response

ITI Ltd on Wednesday withdrew its Rs 1,300-crore follow-on public offering (FPO) due to poor response. The move is a rare instance of a government-owned company failing in its fund raising exercise. ITI is a technology solutions provider for the telecom sector. While the FPO wasn’t part of government’s disinvestment programme, it underscores the challenges when it comes to diluting stakes in out-of-favour PSUs.

“The company has decided to withdraw the issue, due to the prevailing market conditions,” ITI said in a statement. The FPO had garnered only 62 per cent subscription, data provided by stock exchanges showed.

ITI had extended the