BENGALURU: State-run Indian Telephone Industries Ltd (ITI) is eyeing projects worth over Rs 6,000 crore for next fiscal, including the one with Railtel Corporation under the Ministry of Railways for building their security network, especially installing CCTV cameras and other equipments, ITI Ltd chairman and managing director RM Agarwal told this publication.
The telecom equipment manufacturer is looking to raise nearly Rs 1,400 crore through the follow public offering from January 24-28 to meet its working capital requirements for ongoing projects as well as repay loans.
With the help of this funding, Rs 642 crore will be allocated as working capital for various ongoing projects for FY20 and FY21 and Rs 698 crore will be used to settle loans which the public sector unit (PSU) has taken from banks. The telecommunication manufacturer owes banks a total sum of Rs 938 crore, Agarwal added.
He said that unlike the past few years, the overall revenue of the PSU has grown in FY19 and there is a positive outlook for the coming fiscal since ITI Ltd has major projects as well product manufacturing works in its kitty.
"We will soon start working on the ambitious ASCON project with the Indian Army worth over Rs 7,000 crore. The project is awaiting some final touch and a part of our working capital will be directed towards the same," Agarwal said. ITI Ltd has been mandated to construct the telecommunications infrastructure including maintenance of optical fibre network and manufacturing telecom equipments for the Indian Army.
ITI Ltd said that its current projects including ASCON, BharatNet, Network for Spectrum, Smart Energy Meters, Space Programs and e-governance with the central government and state agencies are worth more than Rs 11,051 crore.
Further, it looks to diversify its products and services and leverage their relationship with the government and public sector units, modernise its infrastructure and technology as well as team up with innovative tech leaders and start-ups to support the Make in India and Digital India fillip of the government.
ITI has appointed BOB Capital Markets Ltd, Karvy Investor Services and PNB Investment Services as the book running lead managers to the issue (BRLMs), the PSU said.