A board of power meters hang in a shop in New Delhi (Photographer: Adam Ferguson/Bloomberg News)

ITI Files FPO Papers With SEBI

State-owned ITI Ltd. has filed draft papers with the Securities and Exchange Board of India to float a follow-on public offer, a move that will help the telecom firm meet the minimum 25 percent public shareholding norm.

The FPO comprises fresh issue of up to 18 crore equity shares, according to the draft papers filed with the capital markets regulator. Besides, an additional issue constituting up to 5 percent of the net issue will be reserved for employees, it added.

Proceeds of the issue will used to fund working capital requirements, repayment of loans and general corporate purposes. The FPO will help ITI meet Sebi’s requirement of minimum 25 percent public shareholding.

BOB Capital Markets, Karvy Investor Services and PNB Investment Services will manage the offer.

ITI is a public sector company under the department of telecommunications. It is a supplier for defence communication and networking needs and a major supplier of encryption products to the Indian Army. The major customers are BSNL, MTNL, Defence, paramilitary forces and state governments.

The company has six manufacturing units at Bengaluru (Karnataka), Raebareli, Naini and Mankapur (all in Uttar Pradesh), Palakkad (Kerala) and Srinagar (Jammu and Kashmir).

The government currently holds 93.72 percent stake in ITI. Earlier in March, the Cabinet had cleared selling of 18 crore equity shares through an FPO.