ITI approves Further Public Offering of equity shares

The board of directors of the telecommunication equipment manufacturer, ITI Ltd, approved Further Public Offering or Follow-on Public Offer (FPO) of equity shares, in a meeting held on Friday.

The company had mentioned about its plan of FPO after the second quarter numbers of the current fiscal. In a statement to the stock exchanges, the company stated that the public offering is intended towards raising funds by issuing equity shares of face value of Rs 10. The issue comprises of 18,00,00,000 equity shares along with an additional 18,00,000 shares, representing 1 per cent of the net issue, which will be reserved for the allocation to eligible employees. The press release, however, did not mention any prices for the issue.

The company in FY20 signed a Memorandum of Understanding (MoU) with telecom authority. The MoU aims to achieve turnover and profit for the company for the year 2019-20 by giving greater thrust towards manufacturing of telecommunication equipments and other emerging technology products in the broadband, internet of things etc. Hence, raising fund will be an important trigger in the quarter.

On Friday, the stock of ITI closed down by 0.43 per cent at Rs 103.15 on the BSE.