ITI Limited FPO 2020

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About Company:

(i) They are a public sector company under the Department of telecommunications with over seven decades of experience in telecommunications technology.

(ii) They cater to a wide customer base across various industry segments like telecommunications, defense, information technology, banks, financial institutions, and solar energy. They have a diverse suite of products including defense security encryption products, optical and data network products and passive infrastructure products such as gigabit passive optical network (“GPON”), Wi-Fi products, and manage leased line products (“MLLN”), multi-capacity encryption units, electrical products such as smart energy meters, smart cards, solar panels, set-top boxes and mini personal computers and Internet of Things (“IoT”) products and other diverse products such as HDPE ducts, 3D printing, and sanitary napkin vending machines.

They manufacture certain products at its five manufacturing facilities and produce other products in collaboration with the various technology partners. They also purchase traded products that are installed as part of our projects.

(iii) They provide a wide range of services including operation and maintenance of base transceiver stations (“BTS”), data center hosting solutions, IT and software services like digital wallet solutions, Aadhaar authentication services, optical fiber cable (“OFC”) laying services, telecom product testing services, start-up hub services, skill development services, and citizen-centric services like the National Population Register (“NPR”) and Socio-economic and Caste Census (“SECC”) and annual maintenance contracts (“AMC”) for supplied products.

Clients:

They provide products, services, and solutions portfolio to Public Sector Units (“PSUs”) like Bharat Sanchar Nigam Limited (“BSNL”), Mahanagar Telephone Nigam Limited (“MTNL”), Energy Efficiency Services Limited (“EESL”), Bharat Broadband Network Limited (“BBNL”); the Ministry of Defence, the Ministry of Rural Development (“MORD”), the Registrar General of India and certain other Government agencies

Objects of the ITI Limited FPO 2020:

Our Company proposes to utilize the Net Proceeds towards the following objects: A. Funding working capital requirements of our Company. B. Repayment of loans availed by our Company. C. General corporate purposes (collectively, referred to herein as the “Objects”).

ITI Limited FPO 2020 Details:

Open Date: Jan 24 2020
Close Date: Feb 05 2020
Total Shares: 180,000,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book building
Issue Size: 1400 Cr.
Lot Size: 150 Shares
Issue Price: ₹ 71-77 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 13 2020

Promoters And Management:

President of India.

Recommendation on ITI Limited FPO 2020:

Review and Recommendation of InvestorZone is: 4/10 [ The Issue price at a cutoff of 77 looks reasonable. The ITI is a turnaround story and getting good projects from Govt, though, the company has negative cash-flow in the last 3-4 years which is the only cause of problem ]

Lead Manager of ITI Limited FPO 2020:

  1. BOB Capital Markets Limited
  2. Karvy Investor Services Limited

Registrar of ITI Limited FPO 2020:

  1. Kfin Technology Private Limited

Discussion on ITI Limited FPO 2020:

    💡 *SBI Cards IPO – Schedule (Tentative)*

    *(Serious efforts at the highest levels are being made to announce the IPO within February)*

    28th Feb – Announcement of Price Band

    03rd Mar – Anchor Investors Allotment

    *04th Mar – Offer Opens*

    *06th Mar – Offer Closes*

    12th Mar – Finalisation of Basis of Allotment

    13th Mar – Unblocking of ASBA Accounts

    16th Mar – Credit of Equity Shares to Depository Accounts

    17th Mar – Commencement of Trading on NSE/BSE

    🛑 *BREAKING NEWS*

    💡 *SBI CARD IPO*

    GOOD NEWS
    COME👇🏻

    08-02-2020 TO
    13-02-2020
    BEETWEEN COME

    *IPO FILE AND MARCH FIRST WEEK COME*

    *IPOs Market 🚩*

    ⚠ As informed by exchange circular the issue has been withdrawn by the ITI Limited

    What’s the future of this FPO since its not subscribed fully and only one day remaining?

      As per norms

      Whether I will get allotment of shares/convertible securities in case
      sufficient number of prospective allottees is not found?
      No, the company cannot allot any shares or convertible securities unless there are at
      least 1000 prospective allottees in the public issue.

      Hence only 1000 Subscription numbers is enough to continue with successful release of a FPO/IPO

    FOUND THE REASON, WHICH IS

    We wish to inform you that there is an ongoing banking strike in the country and as per the Regulation 142(3) of the 2018 SEBI ICDR Regulations which states that in case of any force majeure, banking strike or similar circumstance, the issuer may extend the issue period for a minimum of three working days. In accordance with Regulation 142(3) and keeping in mind the circumstances, the FPO Committee has decided to extend the Bid/ Issue Period by four Working days. The Bid/ Issue Closing date is now February 5, 2020. The Price Band will remain the same i.e. Floor Price of Rs. 71 per Equity Share and the Cap Price of Rs. 77 per Equity Share. We request you to take the above on record and the same be treated as compliance under the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

    (Info Courtesy to Ravi jain)

      manipulation in the sence the lead managers extended intially to reach this bank strike stage

    The lead managers are making a mess here. We should have experienced LM for such a big issue.

      I think the lead managers are manipulating the time frame to get people attention to increase the success rate lol

      Very Old logic

    As per info. received from merchant banker. As per equity public issue rules:

    – The issue can be extended to max 12 wkg days

    – If 90% of an issue size is not subscribed, issue devolves to the underwriter.

    – If an issue is not underwritten, then the issue is canceled and subscriptions refunded.

    Jan 30 Today also 49% subscription Onlyyyy

    Which brings back my question

    what will happen if at the end of sixth day of subscription is only 60% for example

    Will they cancel even after already given 3 days extension OR will they announce another 3 days extension ?

      Actually the ITI is good in their pipeline of things

      but but but

      1. Due to bad economy management by Govt., and
      2. Also upcoming pressure of Budget Risks is making ITI demand to be very low

      From the looks of things (as of Jan 30), I would suggest NOT APPLY

    Just wondering , what will happen if at the end of sixth day of subscription and it turns out to be only 60% for example

    Will they cancel? even after the extension OR will they announce another 3 days extension ?

    Just my curiosity

      Jan 30

      Today also 49% subscription Onlyyyy

      Which brings back my question

      what will happen if at the end of sixth day of subscription is only 60% for example

      Will they cancel even after already given 3 days extension OR will they announce another 3 days extension ?

        As per info. received from merchant banker. As per equity public issue rules:

        – The issue can be extended to max 12 wkg days

        – If 90% of an issue size is not subscribed, issue devolves to the underwriter.

        – If an issue is not underwritten, then the issue is canceled and subscriptions refunded.

    Hi MW, till now response not good. Do u think we should apply?? Can management back up from FPO?

      ITI FPO has been extended for 3 more days and FPO Committee meeting held on January 28, 2020, has also revised its Price Band to the following:

      1. Floor Price (as defined in the Red Herring Prospectus): Rs. 71 per Equity Share.

      2. Cap Price (as defined in the Red Herring Prospectus): Rs. 77 per Equity Share.

    So far the response is very cold. Let us wait for tomorrow.

    Mathematics regarding the valuation of ITI after FPO:

    1. As of 31.03.2019, the total number of shares outstanding in the market are 89,63,53,466.

    2. Govt Holdings = 90% and Public Holdings = 10%. As we know the government does not trade, the floating stocks in the market are only ~8.9 Crores. So, less volatility.

    3. PAT of 9MFY20 = 114 Crores. If we annualized this, the full-year PAT comes out at ~150 Crores.

    4. EPS( full year FY19-20)= 1.68

    5. In this FPO, the company is issuing ~18 Crores shares. So, after this, the floating shares will become quite big ~26 Crores. So, more volatility.

    Current valuation = 90*89= ~8000 Crores.

    Post Dilution expected price

    Price = Valuation/no. of shares = 8000/107= 75

    So, after FPO, the price may fall to Rs.75 looking at current valuation.

    Only long term investors who are willing to bet this script for at least 2-3 quarters, can apply. If the company performs in the same manner as it is doing, it will easily go above 100.

    6. EPS ( full-year post-dilution) = 1.42

    Mayur Ji, the company is already listed. If we apply in IPO, then we will get the shares at Rs.77 i.e. Cut-off price and the same will be available to sell on 5th Feb 2020.

    The current Market price is 92, so listing gain will depend upon how much is the price of ITI on 5th Feb 2020.

      Thank you sir for your valuable reply…
      What is your view about this FPO
      should we go for the subscribe..