State-owned ITI Ltd will come out with Rs 1,600 crore follow-on public offer (FPO) on Friday.

The FPO comprises fresh issue of up to 18 crore equity shares. Besides, an additional issue constituting up to 18 lakh shares will be reserved for employees.

The issue will open on Friday, January 24 and close on Tuesday, January 28, the company said in a statement on Monday.

The price band for the FPO will be announced on Wednesday.

Proceeds of the issue will be utilised towards working capital requirements, repayment of loan taken by the company and for general corporate purpose.

According to market sources, the company’s FPO is expected to fetch Rs 1,600 crore.

The public issue is being managed by BOB Capital Markets Ltd, Karvy Investor Services Ltd and PNB Investment Services.

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

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 company has a strong order book of Rs 11,051.12 crore as on December 2019, which includes various government projects such as ASCON, BharatNet, Network for Spectrum, smart energy meters, space programs and e-governance projects.

Going forward, ITI said it is looking to diversify its products and services and leverage their relationship with government and various public sector units, modernise its infrastructure and technology as well as team up with innovative technology leaders and start-ups to support ‘Make in India’ and Digital India’ fillip of the government.