Telecom gear maker ITI to lift Rs 1,600 cr by way of FPO for part-debt compensation, working capital wants; subject to open on 24 January

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Mumbai: State-run electronics and telecom gear producer Indian Phone Industries (ITI) plans to lift Rs 1,600 crore by a follow-on public provide which will likely be utilised for partial debt compensation in addition to to satisfy working capital necessities.

The problem will open on 24 January and shut on 28 January. The worth band for the provide will likely be introduced on 22 January, a high official of the corporate stated.

“A significant part of this issue, around Rs 607 crore, will be utilised for partial repayment of loans while over Rs 640 crore would be used to fund our working capital requirements,” firm’s chairman and managing director RM Agarwal advised reporters right here.

 Telecom gear maker ITI to raise Rs 1,600 cr via FPO for part-debt repayment, working capital needs; issue to open on 24 January

Representational picture. Reuters

ITI’s complete excellent debt as on 31 December 2019, stood at Rs 978.38 crore.

The follow-on provide (FPO) contains a recent subject of as much as 18 crore fairness shares and extra subject of as much as 18 lakh shares, constituting 1 p.c of the online subject, which might be reserved for workers on a proportionate bases.

An FPO is issuance of extra shares to traders or current shareholders to lift fairness.

“We want to diversify our offerings. In the near future, we would be launching new products and services. Also, we would be leveraging our relationship with the government and various public sector agencies, modernise its infrastructure and technology as well as partner with technology firms to support the make in India and digital India initiatives,” he added.

The FPO will assist the corporate meet Sebi’s requirement of minimal 25 p.c public shareholding.

The corporate has a various suite of merchandise together with manufactured merchandise like gigabit passive optical community (GPON), managed leased line community (MLLN) merchandise, stand alone signaling switch level(SSTP), Wi-Fi entry level, radio modem, SMPS, set high field, defence merchandise, good vitality meters, good playing cards, photo voltaic panels, mini private computer systems, amongst others.

In addition to providing the telecom turnkey options and customised assist, ITI has a devoted community system unit for executing turnkey initiatives for set up and commissioning of telecommunication community.

ITI reported a turnover of Rs 919 crore and a PAT of Rs 168 crore within the third quarter of FY2019-20. The corporate’s order e book as of 31 December 2019 stood at Rs 11,051.12 crore which incorporates varied GoI initiatives resembling ASCON, BharatNet, community for spectrum, good vitality meters, house applications and e-governance initiatives.

“The strengths of ITI are its diverse products and services offered across sectors, well established relationships with PSUs, the ministry of Defence and other government and state agencies. With the kind of segments we are entering and the initiatives taken by the government, ITI will be one of the leading technology services provider,” Agarwal stated.

ITI has appointed BOB Capital Markets, Karvy Investor Providers and PNB Funding Providers because the e book operating lead managers to the difficulty.

The online subject can have not lower than 75 p.c allocation to certified institutional consumers, no more than 15 p.c to non-institutional bidders and no more than 10 p.c to retail particular person bidders.

Shares of ITI ended at Rs 102.85 on BSE, down 0.29 p.c as towards the benchmark index Sensex correcting by 0.99 p.c.

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