INSUBCONTINENT EXCLUSIVE:
public offer (FPO) kicked off.
The company intends to sell its 18 crore shares, including one per cent quota for the employees, in the price
bracket of Rs 72 to Rs 77 per share
At the upper limit of the price band, the FPO issue size comes around Rs 1,399.86 crore.
On Friday, the scrip fell 3.17 per cent to hit a
low of Rs 90 on BSE.
The issue will close on Tuesday.
Overall, the company expects to receive Rs 1,236 crore of proceeds, of which Rs 607 is
intended to be used for repaying loans.
"We do have around Rs 936 crore of working capital loan from the bank consortium, in which SBI is
the lead bank, and then around Rs 300 crore loan is there from the government of India and DoT," Managing Director RM Agarwal told
PTI.
Agarwal said Rs 642 crore generated from the FPO is meant for the working capital requirement for various projects while Rs 607 crore
is for repaying loans.
The company intends to start manufacturing Optical Fibre Cables, smart energy projects and so on.
Agarwal further
said the 72-year-old company, which incurred losses from 1996 onwards for a period of 16 to 17 years has bounced back.