HFCL board approves plan to raise Rs 750 crore through various issues

Domestic telecom gear maker HFCL on Friday said it has received its board's consent to raise up to Rs 750 crore through equity, bonds, debentures or any other securities after approval from shareholders and relevant authorities.

HFCL is one of the applicants for the production linked incentive scheme, where the government is offering up to 20 times higher incentives based on investment and incremental production criteria.

"The Board of the directors of the company has, at its meeting held today, inter-alia, considered and approved...fundraising up to Rs 750 crore, by way of private placement or preferential issue of public issue or rights issue or qualified institutional placement or through any other permissible mode," the company said in a stock exchange filing.

HFCL is engaged in the manufacturing of high-end transmission and access equipment, optical fibre, and optical fibre cables (OFC). The company is specialised in setting up modern communication networks for telecom service providers, railways, defence, smart city and surveillance projects.

It has also commissioned a dedicated 5G research and development centre at Bengaluru.

The company had posted over a threefold jump in its consolidated profit after tax to Rs 90.69 crore for the first quarter ended June 30, 2021.

The company had posted a profit after tax of Rs 21.34 crore in the corresponding period in 2020.

The consolidated revenue during April-June 2021 increased 72.46 per cent to Rs 1,206.87 crore, from Rs 699.76 crore in the year-ago period.

The shares of HFCL closed at Rs 68.85 apiece, up 0.29 per cent from its previous close at BSE.