ITI extended its issue closure date to 5 February 2020 on the back of ongoing banking strike in the country.
As per the Regulation 142(3) of the 2018 SEBI Regulations, 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 an exchange filing, ITI said that in accordance to above regulation, the FPO committee has decided to extend the bid/issue period by four working days. The bid/issue closing date is now 5 February 2020. The price band will remain the same i.e. Rs 71 to Rs 77 per equity share.
ITI launched its follow-on public offer (FPO) on 24 January 2020. The FPO was earlier slated to close on 28 January 2020, but the company later extended FPO closing date to 31 January and readjusted its price band. Price band was revised from Rs 72-77 to Rs 71-77 per share.
As on 31 January 2020 (15:15 IST), the FPO received bids for 10.49 crore shares, as against 18.18 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 0.58 times.
The FPO comprises a fresh issue of 18 crore equity shares and additional issue of 18 lakh equity shares. Of the net proceeds from the issue about Rs 642.48 crore will be utilized for funding its working capital requirements and Rs 607.291 crore to repay loans in full or partially taken by the company. The balance is for general corporate purpose. The FPO will also help the company meet Sebi's requirement of minimum 25% public shareholding.
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Shares of ITI were trading 1.1% lower at Rs 85.65 on BSE.
ITI's consolidated net profit surged 1139% to Rs 168.25 crore on 47% jump in net sales to Rs 827.95 crore in Q3 December 2019 over Q3 December 2018.
The bump in the net profit was aided by 107.9% rise in other income to Rs 150.87 crore in Q3 December 2019 as against Rs 72.57 crore in Q3 December 2018. The Dept of Telecommunications (DoT), GOI allocated a grant of Rs 85.40 crore to the company towards meeting the liability of PF of the employees. It has also written back liablities to the tune of Rs 49.30 crore, which in the opinion of the company is no longer required.
ITI manufactures telecommunications products, including electronic switching equipment, telephones and related devices, digital radio, open wire bags, optical fiber equipment and digital exchanges. The company's customers include defense, railways and oil companies.
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