ITI Withdraws Rs 1,400 Crore FPO After Extending Issue Deadline Twice
ITI Chairman and Managing Director Rakesh Mohan Agrawal. (Source: Company press release)

ITI Withdraws Rs 1,400 Crore FPO After Extending Issue Deadline Twice

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After extending its issue deadline twice, state-owned ITI Ltd. on Wednesday withdrew its follow-on public offer citing "prevailing market conditions".

The announcement came after ITI extended the issue period for its FPO twice amid lukewarm response from investors.

At the upper end of the price band, the company expected to mop-up Rs 1,400 crore.

As of Wednesday, the issue was subscribed 62 percent, as per data available with the NSE.

"Pursuant to a resolution passed by the FPO committee of the company dated Feb. 5, 2020, the company has decided to withdraw the issue, due to the prevailing market conditions, in consultation with the book running lead managers to the issue, being BOB Capital Markets, Karvy Investor Services and PNB Investment Services," the company said in a statement.

On Jan. 31, ITI had extended the issue period for its FPO till Feb. 5. Prior to this, the company on Jan. 28 extended the issue period for its FPO by three days till Jan. 31. Also, it had reduced the price band to Rs 71-77 per share for its FPO from Rs 72-77 apiece.

The FPO, which opened on Jan. 24, was initially scheduled to close on Jan. 28.

The company's follow-on public offer comprised a fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares was reserved for employees.

ITI is into the business of manufacturing of a diverse range of information and communication technology products and solutions. Its customers include BSNL, Mahanagar Telephone Nigam Ltd., defence, paramilitary forces and state governments.

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