ITI gets Sebi’s go-ahead for FPO

State-owned ITI Ltd has received Sebi’s go-ahead to float a follow-on public offer (FPO), a move that will help the telecom PSU meet the minimum 25 per cent public shareholding norm.

Besides, kitchen appliances maker Stove Kraft and wire and cable maker Polycab India obtained the regulator’s go- ahead to launch their respective initial public offers (IPOs).

While Stove Kraft got Sebi’s observations on January 23, the other two companies received them on January 25, latest update with the capital market watchdog showed.

These companies had filed their draft papers during September-October 2018.

Sebi’s observations are necessary for any firm planning to launch public issues like IPO, FPO and rights issue.

Going by the draft papers, ITI’s FPO comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 5 per cent of the net issue will be reserved for employees.

Proceeds of the issue will be used to fund working capital requirements, repayment of loans and for general corporate purposes.

The FPO will help meet Sebi’s requirement of minimum 25 per cent public shareholding.

BOB Capital Markets, Karvy Investor Services and PNB Investment Services will manage the company’s FPO.

ITI is into manufacturing of a diverse range of Information and Communication Technology (ICT) products and solutions. Its customers include BSNL, MTNL, defence, paramilitary forces and state governments.

The IPO of Stove Kraft comprises fresh issuance of shares worth up to Rs 145 crore and an offer of sale for up to 7,163,721 shares.

The company would utilise the funds raised through IPO for paying certain borrowing and for other general corporate purposes.

Edelweiss Financial Services, IDFC Bank and JM Financial would manage the company’s IPO.

Polycab’s initial share-sale consists of fresh issuance of shares worth Rs 500 crore, besides an offer for sale of 2,48,86,823 stocks by promoters and existing shareholder – International Finance Corp (IFC).

IFC will sell 10,588,223 stocks of the company through the offer for sale (OFS) route.

Proceeds of the issue will be used for scheduled repayment of certain borrowings, to fund incremental working capital requirements of the firm and for general corporate purposes.
Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Holdings and Yes Securities will manage the Polycab’s IPO.

[“source-moneycontrol”]