ITI Limited sets FPO price band

ITI Limited news

ITI clocked a turnover of INR 919 crore and a PAT of INR 168 crore in its Q3 of FY19-20.

Government Owned Telecommunications Technology Company, ITI Limited, announced the price band of Rs. 72-77 for its Further Public Offering (“FPO”) which opens on January 24, 2020 and closes on January 28, 2020. The FPO 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.


• Floor Price Rs. 72 and Cap Price Rs. 77 per equity share of Face Value Rs. 10 each
• Minimum Bid Lot is 150 equity shares and in multiples of 150 equity shares thereafter
• Further Public Offering of Equity Shares Comprising of A Fresh Issue Of Upto 180,000,000 Equity Shares and additional issue of Upto 1,800,000 Equity Shares, constituting 1% of the Net Issue that shall be reserved for allocation and Allotment to Eligible Employees on a proportionate basis
• Promoters of Company: President of India, acting through the Department of Telecommunications (“DOT”), Ministry of Communications, Government of India


Recently, ITI clocked a turnover of Rs 919 crore and a PAT of Rs. 168 crore 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.