Ahead of the Further Public Offering (FPO), public sector unit ITI Ltd on Thursday said it intends to raise about Rs 1,400 crore of which Rs 607 crore shall be utilised for repaying loans.
"We do have around Rs 936 crore of working capital loan from the bank consortium, in which SBI is the lead bank, and then around Rs 300 crore loan is there from the Government of India and Department of telecommunication," Managing Director of Indian Telephone Industries (ITI) Ltd, R M Agarwal told reporters here.
"So, overall, we have 1,236 crore of loan of which Rs 607 shall be utilised to repay the loan from the banks," he said.
The issue will open on January 24 and close on January 28, said the company in a statement.
The company intends to sell its 18 crore shares, including one per cent quota for the employees, to be sold between the bracket of Rs 72 to Rs 77 per share.
Agarwal said Rs 642 crore generated from the FPO was meant for the working capital requirement for various projects while Rs 607 crore for repaying loans.
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The company intends to start manufacturing Optical Fibre Cables, smart energy project and so on.
Agarwal further said the 72-year-old company, which incurred losses from 1996 onwards for a period of 16 to 17 years has bounced back.
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