State-owned ITI on Wednesday fixed a price band of ?72-77 a share for its follow-on public offer (FPO), which will hit the capital markets on Friday.
The FPO comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares will be reserved for employees.
The issue will open on 24 January and close on 28 January. At the higher end of the price band at ?77 per share, the company will garner ?1,386 crore from the FPO, while at the lower end at ?72 a share, it will raise ?1,296 crore, the company said in a statement.
The price band has been fixed at a discount of 20% from Wednesday’s closing price. On BSE, ITI stock settled at ?99.80 and on the NSE at ?99.75. Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company and for general corporate purposes.
The public issue is being managed by BOB Capital Markets, Karvy Investor Services and PNB Investment Services.
The FPO will help the company meet Sebi’s requirement of minimum 25% public shareholding. ITI is into manufacturing of a diverse range of Information and Communication Technology (ICT) products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.
News Source:- Livemint