ITI extends FPO closing for the second time on shortfall in demand

ITI extended the closing of its follow-on public offer (FPO) for a second time, on Friday, on account of a shortfall in demand. 

The state-owned telecom technology firm cited the banking strike for the extension.

“We wish to inform you that there is an ongoing banking strike in the country and as per the Regulation 142(3) of the 2018 SEBI ICDR Regulations, which states that in case of any force majeure, banking strike or similar circumstance, the issuer may extend the issue period for a minimum of three working days. In accordance with Regulation 142(3) and keeping in mind the circumstances, the FPO Committee has decided to extend the issue period by four working days,”it said in an exchange filing. 

The issue will now close on February 5. It was scheduled to close on January 28. 

However, the firm had decided to extend it till January 31 and had lowered the price band due to the lukewarm response by investors. As of Friday, the FPO was subscribed 58 per cent. The price band is Rs 71-77 per share. ITI’s stock last closed at Rs 85.6 on the NSE. 

Through the FPO, the company aims to raise Rs 1,300 crore, which will be used to pare debt.