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    ITI FPO kicks off: Key things to know

    Synopsis

    Funds raised through FPO will be utilised for funding working capital requirements as well as repayment of existing debt.

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    The listing date for the ITI FPO shares is not yet finalised by the company.

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    The follow-on-public offer of ITI, which kicked off on January 24, is expected to garner Rs 1,400 crore. Recently, the company hogged the limelight when its net worth turned positive after a gap of 16 years. Earlier in January, the PSU posted manifold rise in profit at Rs 168.25 crore for the December quarter of 2019. It had posted Rs 13.58 crore profit for the year-ago period.

    Below are the key things you should know about the ITI FPO.

    1. ITI FPO price band
      The government-owned telecommunications technology company has fixed the price band of Rs 72-77 for its further public offering. The stock traded at Rs 91 on Friday, down 2 per cent. The stock had hit a 52-week high of Rs 110 on January 25, 2019.
    2. ITI FPO opens/ close date
      The issue opened for subscription on January 24. The company is expected to raise Rs 1,386 crore at Rs 77 per equity share and an additional Rs 13.86 crore from the portion reserved for eligible employees, taking the total issue size to Rs 1,399.86 crore. The issue will close on January 28, Tuesday.
    3. Objective of ITI FPO
      Funds raised through FPO will be utilised for funding working capital requirements as well as repayment of existing debt.
    4. About the ITI FPO issue
      The issue comprises fresh issue of up to 18 crore equity shares and additional issue of up to 18 lakh to be reserved for eligible employees.
    5. How to apply for ITI FPO
      The issue can be subscribed through banks using ASBA facility or through stockbrokers using UPI. Major banks including SBI, HDFC Bank and ICICI Bank are offering online application facilities.
    6. Lot size of ITI FPO
      The board of directors approved the minimum bid lot for the further public offer at 150 equity shares and in multiples of 150 equity shares thereafter.
    7. ITI FPO listing date
      The listing date for the ITI FPO shares is not yet finalised by the company.
    8. Prior ITI FPO
      The last PSU FPO, which the market saw, was in February 2014, that of Engineers India. The issue was offered in the Rs 145-150 price band, along with a Rs 6 discount to retail investors and employees. The issue saw 2.83 times subscription and its aggregate issue size was of Rs 505.40 crore.
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