Bangaluru: On the sidelines of unveiling Rs 1,400 crore through FPO, Managing Director of Indian Telephone Industries (ITI) Ltd, R M Agarwal admitted that there are still some issues with salary payments to its employees.
Once having a monopoly in telecommunications equipment manufacturing, the fortunes of this public sector enterprise has dwindled in the last two decades.
Recently Rajya Sabha Member Veerendra Kumar Kerala claimed that ITI is experiencing cash crunch and may affect the employees.
Further, the Member of Parliament from Kerala warned that there is a threat to 450 employees in the ITI Palakkad unit will be rendered jobless.
Situation has improved
Speaking exclusively with Etv Bharat Agarwal said, “In the last few months, we started paying gross salaries to the employees. Earlier, we were paying only the net salaries. In the last few months, we started paying PL to leave encashment. That way the position is improving. But still, some issues are there”.
Further Public Offering (FPO)
Through the FPO, ITI intends to raise about Rs 1,400 crore of which Rs 607crore shall be utilised for repaying loans.
The company intends to sell its 18 crore shares, including one per cent quota for the employees, to be sold between the bracket of Rs 72 to Rs 77 per share.
Rs 642 crore generated from the FPO was meant for the working capital requirement for various projects while Rs 607 crore for repaying loans.
ITI in optimistic mode
“Future plans are great, and ITI is expecting a turnover of Rs 3,300 crore from different projects in the pipeline. By next year 40 to 60% growth is expected”, Agarwal said.
“By next year we will be starting a data center project and setting up of the lithium-ion plant. Also, 125 start-ups are in our incubation center and will be expanded too”, he added.
