State-Owned ITI Again Extends FPO Issue Period

State-owned ITI Ltd. on Friday extended the issue period for its ongoing follow-on public offer by four working days till Feb. 5 following lukewarm response from investors.

This is the second time the company has extended its issue period.

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 comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares reserved for employees.

The issue was subscribed 58 percent till 1645 hours on Friday.

"The FPO committee has decided to extend the bid/issue period by four working days. The bid/ issue closing date is now Feb. 5, 2020. The price band will remain the same -- floor price of Rs 71 per equity share and the cap price of Rs 77 per equity share," ITI said in a statement.

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

Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company and for general corporate purpose.

The public issue is being managed by BOB Capital Markets, Karvy Investor Services and PNB Investment Services.

The FPO will help the company meet markets regulator Securities and Exchange Board of India''s requirement of minimum 25 percent public shareholding.

ITI is into manufacturing of a diverse range of information and communication technology products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.