Market cheers ITI's withdrawal

ITI Ltd announced yesterday early evening that is has decided to withdraw its follow-on-public offer due to poor market conditions.

The PSU had extended the issue twice, once by lowering the price band marginally and next time by just extending the date. Despite these two extensions, the offer evoked a poor response and thus the withdrawal. Yesterday was the last day and it was subscribed by a mere 0.62 times.

The company had planned to raise Rs.1400 crore from the FPO.

The market is very happy with this news and the stock opened today with an upward gap of over 5% at Rs.88.50, going to hit an intraday high at Rs.94.70, a jump of over 12.5%.