State-run telecommunications equipment maker ITI Ltd has extended its follow-on public offering (FPO) by three more days, stretching the period for the second time after failing to receive enough bids for its shares.
The issue, which was slated to close on Friday, has been extended till February 5. It has so far received bids for 58% of the total 181.8 million shares on sale, according to stock-exchange data.
While the issue date is extended, the government has kept the revised price band intact at Rs 71-77 compared with the original price band of Rs 72-77 per share.
The offering was subscribed 48.75% on Wednesday.
The government needs at least 75% subscription of the institutional buyers’ portion or alternatively 90% of overall subscription for the offer to succeed. If the government is unable to garner sufficient bids, it would have to refund money for the bids already made.
BOB Capital Markets, Karvy Investor Services, and PNB Investment Services are merchant bankers managing the FPO.
ITI was looking to raise Rs 1,400 crore from the public offering. The company planned to utilise Rs 642 crore towards funding its working capital requirement and Rs 607 crore towards repayment of its loans besides an undisclosed amount towards general corporate purposes.
The firm has reworked its business operations on the path to profitability from sustained losses. The Cabinet Committee of Economic Affairs (CCEA) had approved a revival plan in 2014. The company reported a positive net-worth after a gap of 16 years, according to its press statement ahead of the FPO.
It has aligned its operations according to market demand, providing end-to-end turnkey solutions, diversifying into new areas like 5G, cloud computing, artificial intelligence (AI), monetizing its large pool of real estate assets for continuous revenue generation.
The company has an order book of Rs 11,051 crore. Nearly one-third comprises of large turnkey projects, while 57.87% comprises annual maintenance contracts (AMCs).