MUMBAI, January 22, 2020: Government Owned Telecommunications Technology Company, ITI Limited, today announced the price band of Rs. 72-77 for its Further Public Offering (“FPO”).
The issue which opens on January 24, 2020 and closes on January 28, 2020 is expected to raise Rs.1386 crore at Cap Price of Rs 77 per equity share and an additional Rs. 13.86 crore from the portion reserved for the eligible employees; taking the total issue size to Rs. 1399.86 crore. The company intends to utilize for funding its working capital requirements for FY2020 as well as repayment of existing debt.
Recently, ITI clocked a turnover of Rs 919 cr and a PAT of Rs. 168 cr in its Q3 of FY19-20 with which the company’s networth turned positive after a period of 16 years, on account of its efforts in project implementation, manufacturing and marketing. ITI Ltd, Chairman and Managing Director, Rakesh Mohan Agarwal had stated that several measures have been taken to reduce operating costs, increase operational efficiencies and improve productivity.
After the CCEA approved revival in 2014, the turnaround story of ITI from a loss to profit making company has been supplemented by its focus and alignment to market demand, end to end turnkey solutions using own resources, diversifying into new areas like 5G, Cloud Computing,AI, monetizing its large pool of real estate assets for continuous revenue generation, Skillset upgrade of existing resources and an aggressive bidding strategy which reflects in its strong order book of Rs. 11,051 cr of which 29% comprises of large turnkey projects, 57.87% AMCs and 13% other products and services orders.
The last PSU Further Public Offer that the Markets saw was in February 2014 of Engineers India Ltd which came at a price band of Rs 145- 150 , along with a Rs.6 discount to retail investors and employees. The issue saw a subscription of 2.83 times its aggregate issue size of 505.40cr.
The global telecommunication industry continues to grow with its adoption of 5G, IoT, edge computing, AR and AI which are set to become game changers and will accelerate business operations, boost customer service and satisfaction, transform field force management to name a few.