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State-run ITI scraps follow-on offering after failing to get enough bids
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State-run telecom equipment maker ITI Ltd has cancelled its follow-on public offering after failing to attract enough investors despite cutting the price band and extending the bidding period.

The company decided to withdraw the issue “due to the prevailing market conditions”, it said in a stock-exchange filing.

ITI had last week extended for a second time, by three more days to February 5. It had previously also revised the price band to Rs 71-77 from the original Rs 72-77 per share.

The company received bids for only 62% of the shares on offer. It needed at least 90% subscription for the offer to succeed.

BOB Capital Markets, Karvy Investor Services and PNB Investment Services were the merchant bankers managing the FPO.

ITI was looking to raise Rs 1,400 crore from the public offering. The company planned to use Rs 642 crore towards funding its working capital requirement and Rs 607 crore to repay its loans, besides using an undisclosed amount for general corporate purposes.

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