ITI Limited is incorporated on Jan 25, 1950 at Bengaluru, Karnataka. ITI is a public sector company which comes under Department of Telecommunications (DoT) having experience in telecommunications technology with customer base like Telecomm, Defense, IT, Banks and solar energy.
Their Customers include BSNL, MTNL, EESL and the Ministry of Defence, the Ministry of Rural Development (“MORD”), the Registrar General of India and certain other Government agencies. They are involved in various government aspiring projects, some of which are: ASCON, BharatNet, Network of Spectrum, Smart Energy meters, Space Programs, E-Governance Projects.
They have manufacturing facilities in Bengaluru, Mankapur, Naini, Palakkad and Raebareli and a research and development (“R&D”) center in Bengaluru.
They have technology transfer agreements (under which they pay a royalty and other fees) with various technology and telecommunications companies for certain technology and products including MLLN and optical transport network (“OTN”) equipment, telecommunication.
Upcoming Projects: They have bid for coming ASCON IV project of ministry of Defence that entails the establishment of an optical fiber network for the Indian army and also Gujrat Net Project.
- Diverse Products and Services
- Handy Relationship with PSUs, Ministry of defence and Govt Agencies.
- Modernised Equipments
President of India, acting through the Department of Telecommunications, Ministry of Communications, GOI.
Financials of Company
|Fig in Cr.|
Objects of Issue
- For Working Capital Requirements
- Repayment of Loans
- General Corporate Purposes
|Offer Period||Jan 24, 2020 – Feb 5, 2020|
|Issue Type||Book Built Issue IPO|
|Issue Size||Rs. 1400 Cr. (Approx.)|
|Face value||Rs. 10 Per Equity Share|
|Issue Price||Rs. 71 – 77 Per Share|
|Market Lot||150 Shares|
|Listing at||NSE, BSE|
|Minimum Investment (Retail)||Rs. 11,550/- Per lot at Cut off Price
QIB: 75% of the Net Issue; NII: 15% of the Net Issue; RII: 10% of the Net Issue
ITI FPO Schedule
|Offer Open||Jan 24,2020|
|Offer Close||Jan 31,2020|
|Finalisation of Basis of allotment|
|Credit Demat Account|
|FPO Registrar||FPO Lead Managers|
|Karvy Computershare Private Limited
Karvy Registry House, 8-2-596, St. No. 1, Banjara Hills, Hyderabad – 500 034 – Andhra Pradesh, India Phone:040-23312454; Email-ID:itiltd.FPO@karvy.com; Website:https://karisma.karvy.com/
|1. BOB Capital Markets Limited
2. Karvy Investor Services Limited
3. PNB Investment Services Limited
ITI FPO GMP (Grey Market Premium)
Review and Recommendations
ITI Limited is one of the oldest PSU Company in India with his tremendous contribution in technology sector in India with Government of India’s holding of 89.97%; The company is having a order book of approx. 20K Cr. and expected to receive ASCON IV order from Ministry of Defence. The Stock is trading at around Rs. 100/- per share on bourses, so with Price band of Rs. 71-77 per share is a healthy FPO price set for the issue.
So, our Recommendation is definitely a “YES” to subscribe for long term perspective but looking at poor subscription figures and reducing price of share in market it seems difficult to have any listing gain. So, keep away if you are investing for only short term listing gain.