HCL Infosystems to raise Rs 500 cr via rights issue

Board members approved the proposal in a meeting held on Aug 29

The information technology (IT) services and distribution services arm of the HCL Enterprise- HCL Infosystems- said the company's board has approved a plan to raise up to Rs 500 crore from its existing shareholders.

"HCL Infosystems' Board had, in an August 29 meeting, considered and approved the recommendations of its capital raising committee to go for a rights issue of shares to existing shareholders of the company as a mode of raising equity capital aggregating up to Rs 500 crores," said the company in a note to the Bombay Stock Exchange (BSE).

With the announcement, the company's stock price gained 1.7 per cent or Rs 0.8 to close at Rs 47.80 on Tuesday on the BSE.

As on June-end in 2017, promoters and promoters' group held 58.04 per cent shares at HCL Info.

The company, which reported a net loss of Rs 55.12 crore on a revenue of Rs 684.2 crore in Q1, recently announced that it would distribute Apple products, including iPhone, in the Indian market. To meet this purpose, HCL Info had, in December 2016, signed a non-disclosure agreement with Apple India. 

HCL Infosystems is looking to expand its footprint in India after working with some of the leading brands of the country, including Lenovo, Motorola and Nokia, among others