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ITI's Rs 1,400 crore FPO subscribed 6% on Day 1

The FPO received bids for 1,01,27,550 shares compared with 18,18,00,000 shares on offer.

Last Updated: Jan 24, 2020, 07.27 PM IST
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NEW DELHI: The Rs 1,400-crore follow-on public offer (FPO) of ITI received 6 per cent subscription on Day 1 of the bidding process on Friday. The issue will close on Tuesday.

At a price band of Rs 72-77, the FPO received bids for 1,01,27,550 shares compared with 18,18,00,000 shares on offer.

The Rs 138.6 crore portion reserved for retail individual investors saw bids for 32,98,650 shares and was subscribed 18 per cent. The NII portion was off to a slow start with 1,01,400 bids. The QIB portion saw bids for 66,66,000 shares. The employee portion was subscribed 3 per cent.

The company intends to use FPO proceeds towards paying part of its loans.

"We do have around Rs 936 crore of working capital loan from the bank consortium, in which SBI is the lead bank, and then around Rs 300 crore loan is there from the government of India and DoT," Managing Director RM Agarwal told PTI.

Agarwal said Rs 642 crore generated from the FPO was meant for the working capital requirements for various projects while Rs 607 crore for repaying loans.

The company intends to start manufacturing optical fibre cables, smart energy project and so on.

ITI said it is looking to launch products under optical and data, defense security, IoT; upgrade and modernise its infrastructure and technology as well as team up with innovative technology leaders and startups to support the Make in India and Digital India fillip of the government.

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