In unprecedented move, ITI withdraws Rs 1,300-crore FPO over poor demand

The government holds 90 per cent stake in ITI which is valued at Rs 7,550 crore, currently

Poor response has prompted ITI to withdraw its Rs 1,300-crore follow-on public offer (FPO), a move that is unprecedented by a government company.

ITI is a technology solutions provider to the telecom sector. 

While the FPO wasn’t part of the government’s disinvestment programme, it underscores the challenges when it comes to diluting stakes in public sector undertakings that are not in the limelight.

“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 closing date