ITI Limited IPO – Review, Dates, Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the ITI Limited IPO release date, IPO offer price, subscription, ITI IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.Stock Broker Complaints


ITI IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.9/10
Industry Ranking7.2/10
Company Background8.2/10
Company Reputation7.7/10
Competitive Edge7.2/10
Financial Statements8.0/10
Popularity Index7.9/10
Promoters Reputation8.0/10
Retail Appetite7.1/10
Top Brokers Review7.8/10
Overall Ratings7.5/10
Star Ratings★★★★☆

Summary of ITI IPO

ITI Limited IPO

They are a public sector company under the Department of Telecommunications with over seven decades of experience in telecommunications technology. They cater to a wide customer base across various industry segments like telecommunications, defence, information technology, banks, financial institutions and solar energy.

Their diverse products, services and solutions portfolio has helped them forge relationships with their customers including 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.

From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements

  • Their consolidated revenues from operations in Fiscal 2019, Fiscal 2018 and Fiscal 2017 were Rs.16,683.68 million, Rs.14,841.62 million and Rs.15,481.37 million, respectively.
  • Their consolidated revenues from operations for the six months ended September 30, 2019 were Rs.5,787.83 million.
  • They made consolidated operating losses (not including GoI grants included in other income) in Fiscal 2017 of Rs.943.19 million.
  • In the Fiscal 2019 and 2018, they made a consolidated operating profit (not including GoI grants included in other income) of Rs.925.38 million and Rs.975.84 million, respectively.

The Promoters of this company are THE PRESIDENT OF INDIA, ACTING THROUGH THE DEPARTMENT OF TELECOMMUNICATIONS (“DOT”), MINISTRY OF COMMUNICATIONS, GOVERNMENT OF INDIA. The lead managers to the issue are BOB Capital Markets Limited, Karvy Investor Services Limited, PNB Investment Services Limited. The Registrar to this issue is KFin Technologies Private Limited.



ITI IPO Dates

The opening and the closing dates of ITI IPO are FRIDAY, JANUARY 24, 2020 and  FEBRUARY 5, 2020.


ITI IPO Subscription

Day / DateQIBNIIRIIEmployeeTotal Subscription
1st Day – Jan 240.05x0.00x0.18x0.03x0.06x
2nd Day – Jan 270.05x0.01x0.50x0.18x0.09x
3rd Day – Jan 28 0.51x0.18x0.96x0.65x0.51x
4th Day – Jan 290.51x0.18x0.96x0.65x0.51x
5th Day – Jan 310.59x0.18x1.04x0.87x0.58x
6th Day – Fec 30.59x0.18x1.04x0.87x0.58x
7th Day – Fec 40.59x0.18x1.04x0.89x0.58x
8th Day – Fec 50.63x0.23x1.06x0.98x0.62x
Shares Offered or Net Issue135,000,00027,000,00018,000,0001,800,000181,800,000

The shares subscribed by the public will be updated here.


ITI IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Basis of Allotment FinalizationJan 31, 2020
Refunds InitiationFeb 3, 2020
Credit of Shares to Demat AccountFeb 4, 2020
Share Listing DateFeb 5, 2020

ITI IPO Price Band / Cash Price

The face value of each share is Rs.10, and the cash price of the IPO is Rs 72 – Rs 77. 


ITI IPO Size

This Initial Public Issue of 181,800,000 Equity Shares of Rs.10 each for cash at a price of Rs 72 – Rs 77 per equity share aggregating to Rs. 1,399.86 Crores.


ITI IPO Share Offering

Fresh Issue: The Fresh Issue of 180,000,000 Equity Shares by their Company of Rs.10 each

Net Issue : The Net Issue of 180,000,000 Equity Shares of Rs.10 each


ITI Limited – Company Overview

The company has a diverse suite of products including defence 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 have manufacturing facilities in Bengaluru, Mankapur, Naini, Palakkad and Raebareli and a research and development (“R&D”) centre in Bengaluru and skill development centres under PMKVY in Bengaluru and Srinagar.

The company grants for capital expenditure from the GoI to modernize their manufacturing infrastructure and to develop their capabilities to manufacture a diverse range of information and communication products, defence security encryption products and electronic products.

ITI In-house Formulation

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

In addition, they provide a wide range of services including operation and maintenance of base transceiver stations (“BTS”), data centre 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.

ITI – Contribution to Campaigns and Policy Initiatives

They contribute to a number of campaigns and policy initiatives sponsored by the GoI including “Make in India”, to encourage various companies to manufacture their products in India; “Digital India” to ensure that GoI’s services are made available to citizens electronically; Pradhan Mantri Kaushal Vikas Yojana (“PMKVY”) under Skill India Program to develop and 51 standardize skills among India’s workforce and “Swachh Bharat” to improve the cleanliness and hygiene in public places.

In addition, they benefit from the GoI’s Preferential Market Access policy where indigenous manufacturers are given preference in procurement by Government agencies.

ITI Agreements

They have entered into transfer of technology agreements and teaming agreements to provide them with access to new technology and products to expand their offering to customers, as well as to drive their efforts towards innovation. The company enters into these agreements in the ordinary course of their business.

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 and IT products like GPON, Wi-Fi, terabit routers and fixed line and GSM technology.

Their teaming partners, with whom they are working together to offer new products and services, include Centre for Development of Telematics for GPON products, Coriant OY for Managed Leased Line Network products, Z-Com, Taiwan, for Wi-Fi products, Inesh for Smart Energy meters, Shreenath Smart Technologies Pvt Ltd for Aadhaar Authentication services, Centre for Development of Advanced Computing (“CDAC”) for IoT solutions and Trimax Data Centre Services Private Ltd for data centre services.

ITI Limited: Business strategies

  • Continuously diversify their products and services and leverage their relationships with the GoI and PSUs
  • Augment their manufacturing capabilities by upgrading and modernizing their infrastructure and technology
  • Teaming with innovative technology leaders and start-ups
  • Reduce their operating costs, increase operational efficiencies and improve productivity

ITI Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
30-Sep-1931-Mar-19Mar-1831-Mar-17
Total Assets46,617.5646,637.5647,057.3832,048.93
*Total Revenue6,033.9720,048.4118,116.1720,887.16
Total Expense6,577.9919,123.0315,810.5218,223.25
Profit After Tax(544.03)925.382,305.642,663.91

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Sep-19Mar-1931-Mar-1831-Mar-17
Basic & Diluted(0.65)0.973.186.72

ITI IPO – Promoters

The Promoters of this company are:

  • THE PRESIDENT OF INDIA
  • ACTING THROUGH THE DEPARTMENT OF TELECOMMUNICATIONS (“DOT”)
  • MINISTRY OF COMMUNICATIONS
  • GOVERNMENT OF INDIA

List of Related Parties (Key Managerial Personnel)

  • S Shanmuga Priya, Company Secretary and Compliance Officer
  • MALATHY M, Chief Financial Officer
  • R M AGARWAL, Chairman & Managing Director

Interest in promotion of the Company

None of their Directors have any interest in the promotion of their Company other than in the ordinary course of business.

Interests of Promoter in property of their Company

Their Directors have no interest in any property acquired by their Company two years prior to the date of this Red Herring Prospectus, or proposed to be acquired by their Company.


ITI IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Up to [●] Equity Shares, aggregating up to Rs.[●] million
 Of which:
Net Issue180,000,000 Equity Shares, aggregating up to Rs.[●] million
Employee Reservation PortionUp to 1,800,000 Equity Shares, aggregating up to Rs.[●] million
Of which:
QIB PortionNot less than [●] Equity Shares
Non-Institutional PortionNot more than [●] Equity Shares
Retail PortionNot more than [●] Equity Shares
 Equity Shares outstanding prior to the Issue897,000,000 Equity Shares
 Equity Shares outstanding after the Issue [●] Equity Shares

ITI IPO Issue Object

These are the IPO Issue Objects of the company:

A. Funding working capital requirements of their Company;
B. Repayment of loans availed by their Company; and
C. General corporate purposes

ITI Limited: Key Strength

  • Diverse product and services offering across sectors
  • Well established relationship with certain PSUs, the Ministry of Defence and other Government agencies
  • Strong order book comprising of a diversified suite of products and services across various sectors
  • Modern manufacturing infrastructure, equipment and technology
  • Revitalized Company with improving financial performance
  • Experienced Board, management team and skilled workforce

ITI IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Diverse product and services offering across sectors;
  • Well established relationship with PSUs, the Ministry of Defence, other GoI agencies and state governments;
  • Strong Order Book comprising of a diversified suit of products and services across various sectors;
  • Modern manufacturing infrastructure, equipment and technology;
  • Revitalized Company with improving financial performance; and
  • Experienced Board, management team and skilled workforce.

ITI IPO – Quantitative Factors

Basic & Diluted EPSRONW in %NAV (Rs.)
31-Mar-176.72NA(23.02)
31-Mar-183.18NA(9.36)
Mar-190.97NA(6.03)
  • Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.[●] per Equity Share
ParticularsP/E ratio
Highest
Average
Lowest

ITI Limited: Competitive Peers

There are no listed companies in India that are engaged in a similar business portfolio as that of the Company. Hence, it is not possible to provide an industry comparison in relation to the Company.


ITI IPO Lead Managers

Lead Managers
PNB Investment Services Limited

Karvy Investor Services Limited

BOB Capital Markets Limited

ITI IPO Registrar to Offer

Registrar to the Offer
KFin Technologies Private Limited (Formerly
known as Karvy Fintech Private Limited)
Selenium Tower B, Plot No – 31 & 32, Financial
District, Nanakramguda, Serilingampally,
Hyderabad, Rangareddi, 500 032, Telangana
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
E-mail: iti.fpo@kfintech.com
Investor grievance email: einward.ris@kfintech.com
Website: www.kfintech.com
Contact Person: M. Murali Krishna
SEBI Registration No.: INR000000221

Other Details:

  • Statutory Auditor – M/s. Sankaran & Krishnan
  • Legal Counsel to the Company – Cyril Amarchand Mangaldas
  • Bankers to the Company – DCB Bank Limited, Indian Bank, Punjab National Bank, State Bank of India, Bank of Baroda, Canara Bank, Central Bank of India, Axis Bank Limited, ICICI Bank Limited.

ITI IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

ITI IPO Grey Market Premium

The ITI IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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ITI IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]

News 1ITI IPO  [Download RHP Prospectus]


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