About the Company:
ITI Limited is a public sector company under the Department of Telecommunications with over seven decades of experience in telecommunications technology.
Company caters to a wide customer base across various industry segments like telecommunications, defence, information technology, banks, financial institutions and
solar energy.
Company manufactures certain products ourselves at our five manufacturing facilities and produce other products in collaboration with our various technology partners.
As at December 31, 2019, Company had 3,520 employees which includes over 731 employees with technical and professional qualifications.
As at December 31, 2019, Company’s Order Book was Rs.110,51.1 crores (including advance purchase orders but net of GST), of which 29.09% comprises large turnkey projects, 57.87% comprises AMCs and 13.05% comprises other product and services orders.
Company’s Products:
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 machines.
Company’s Clients:
- Bharat Sanchar Nigam Limited (“BSNL”)
- Mahanagar Telephone Nigam Limited (“MTNL”)
- Energy Efficiency Services Limited (“EESL”)
- Bharat Broadband Network Limited (“BBNL”)
- Ministry of Defence.
- Ministry of Rural Development (“MORD”)
Company’s Top 5 Order Book: (Percentage wise)
Projects on which Company is Currently Working:
ASCON: Providing maintenance services for the Army Static Switched Communication Network (“ASCON”) in its first three phases, which we had earlier installed for the Ministry of Defence.
BharatNet (including MahaNet, GujaratNet, Rajnet and WBNet):
Manufacturing, supplying and installing GPON technology equipment for the GoI’s flagship project “BharatNet” which aims to provide high-speed broadband connectivity to over 250,000 Gram Panchayats in India.
Company is also providing 54,000 kms of OFC and broadband connectivity to approximately 25,500 Gram Panchayats under the BharatNet Phase II project in Maharashtra state (under the MahaNet project) and in Gujarat state (under the GujaratNet project).
Company has been awarded the orders in Rajasthan (under the Rajnet project) and West Bengal (under the WBNet project) under the BharatNet Phase II project;
Network for Spectrum: Laying OFC under the Network for Spectrum (“NFS”) project for the Indian defence forces in the Eastern and North-Eastern regions with BSNL.
Smart Energy Meters: Manufacturing and supplying 2.5 million smart energy meters for EESL.
Space Programs: Providing screening of electronic components and assembly and testing of various flight packages for the Indian space program.
E-Governance Projects: Manufacturing and supplying products and services for e-Governance projects like the NPR, the SECC project, and Aadhaar authentication services.
Company’s Manufacturing Facilities:
Company has 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.
Management Team:
- Mr. Rakesh Mohan Agarwal (Designation: Chairman and Managing Director)
- Mr. Chittaranjan Pradhan (Designation: Director (Finance))
Objectives of the Issue:
- Funding working capital requirements of the Company.
- Repayment of loans availed by the Company
- General corporate purposes
Positives for the Company:
Diverse Product and Services offering across sectors.
Company continues to evolve from a telecommunications equipment manufacturer to a telecommunications technology company. Company caters to a wide customer base across various industry segments like telecommunications, defence, information technology, banks and financial institutions and solar energy.
Well established relationship with certain PSUs, the Ministry of Defence and other Government agencies.
Company’s diverse products, services and solutions portfolio has helped us forge relationships with our customers including PSUs like BSNL, BBNL, MTNL and EESL the Ministry of Defence, Ministry of Rural Development, Ministry of Urban development, the Registrar General of India and other Government agencies.
Modern Manufacturing infrastructure, equipment and technology.
Company has manufacturing facilities in Bengaluru, Mankapur, Naini, Palakkad and Raebareli and a R&D centre in Bengaluru and skill development centres under PMKVY in Bengaluru and Srinagar.
Company has established HDPE duct manufacturing lines at Palakkad unit.
In addition, the electronic manufacturing facilities in our Bengaluru, Raebareli, Palakkad and Mankapur plants have been upgraded to manufacture a diverse suite of products including other optical and data network products, defence security encryption products, IoT products as well as other products like smart energy meters,
smart cards, solar panels, set-top boxes, security surveillance products, radio modems and other allied products.
Peer Group Comparison:
There are no listed companies in India that are engaged in a similar business portfolio as that of ITI Limited. Hence, it is not possible to provide an industry comparison in relation to the Company.
Financials of the Company:
| (in Crores) | FY 17 | FY 18 | FY 19 | 30th Sept 19 |
|---|---|---|---|---|
| Revenue | 2088.7 | 1811.6 | 2004.8 | 603.39 |
| Net Profit | 266.3 | 230.5 | 92.5 | (-54.4) |
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IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 24th January 2020 |
| Issue Closes on:. | 31st January 2020 |
| Issue Price | Rs.71 – 77 |
| Face Value | Rs.10 |
| Minimum Lot | 150 |
| Minimum Investment | Rs.11,550 |
| Listing at | NSE & BSE |
Note: This is FPO (not IPO) Company is already Listed on Stock Exchange.
Important Dates:
| Finalization of Basis of Allotment | on or Before 31st January 2020 |
| Initiation of Refunds | on or Before 3rd February 2020 |
| Credit of Equity Shares: | on or Before 4th February 2020 |
| Listing Date: | on or Before 5th February 2020 |
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Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 135,000,000 | 0.05 | 0.05 | 0.49 |
| NII | 27,000,000 | 0.00 | 0.01 | 0.16 |
| Retail | 18,000,000 | 0.18 | 0.50 | 0.92 |
| Employee | 1,800,000 | 0.03 | 0.18 | 0.65 |
| TOTAL | 181,800,000 | 0.06 | 0.09 | 0.49 |
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| Company Contact Info: |
|---|
| ITI Limited ITI Bhavan Doorvaninagar Bengaluru 560 016 Karnataka, India Tel: +91 80 2561 7486 E-mail: cosecy_crp@itiltd.co.in Website: www.itiltd-india.com |
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| IPO Registrar Info: |
|---|
| 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,India Tel: +91 40 6716 2222 E-mail: iti.fpo@kfintech.com Website: www.kfintech.com |
