New Delhi: State-owned telecom equipment maker ITI will offer 18 crore fresh equity shares under a follow-on public offer (FPO) in July this year and will start roadshows for the FPO in the third week of June, according to an internal action plan note of the Department of Telecommunications (DoT).
The issue is scheduled to open on July 31, 2019. An FPO is a process by which a company already listed in an exchange issues new shares to investors or existing shareholders, usually the promoters. It is used by companies to diversify their equity base.
“Further public offer of 18 crore fresh equity shares by ITI Ltd is to be taken up in July 2019 and the roadshows for this will start in the third week of June. The PSU will file Red Herring Prospectus with Registrar of Companies (RoC) by July 16, 2019.
“The issue will open on July 31, 2019, and before that advertisement will be on display on July 29”, the Telecom Ministry action plan note says, chalking out the timeline for ITI’s FPO.
An additional issue constituting up to 5 percent of the net issue will be reserved for employees, as per the plan. The ITI intra-day stock price was down 1.52 percent at Rs 90.80.
The government holds 90 percent stake in ITI, while the Special National Investment Fund holds 7.75 percent as the largest public shareholder. The company has a market cap of Rs 8,158 crore. (IANS)
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