HFCL hits fresh 52-week high after exit from CDR mechanism

The stock rallied 8% to Rs 30.10, its highest level since February 8, 2008 on the NSE.

Himachal Futuristic Communications (HFCL) hit an over nine-year high of Rs 30.10, up 8% on the National Stock Exchange (NSE) in intra-day trade, after the company said it was no longer under the Corporate Debt Restructuring (CDR) mechanism. The stock was trading at its highest level since February, 2008.

“Since the Company has completed all the formalities related to exit from CDR mechanism, the CDR Cell vide its letter no. BY CDR (DAP) No. 2018/2017-18 dated 1st September, 2017 which was received by us on 12th September, 2017, has informed the Company about successful exit of the Company from the CDR mechanism,” HFCL, the company engaged in telecom cables business said in a BSE filing on Wednesday after market hours.

“The successful exits of the account of HFCL from CDR mechanism stands approved on receipt on confirmation from IDBI Bank, the Monitoring Institution (MI) that the directions stipulated in CDR-EG held on February 22, 2016 have been compiled with,” Corporate Debt Restructuring Cell in its decision.

Meanwhile, the stock zoomed 41% in the last seven trading sessions from Rs 21.35 on September 5, after Grantham Mayo Van Otterloo (GMO) - Emerging Markets Quality Fund bought nearly 20 million shares of HFCL through open market.
 

On September 6, 2017 Grantham Mayo Van Otterloo - Emerging Markets Quality Fund bought 11.08 million equity shares representing 0.89% of total holding of HFCL at Rs 23.92 on the NSE.

On September 7, 2017, it purchased an additional 8.75 million shares of the company at Rs 28.13 per share, the NSE bulk deal data shows.

At 12:57 PM; the stock was up 6% at Rs 29.45 on NSE, as compared to a marginal 0.01% rise in the Nifty 50 index. A combined 26.24 million shares changed hands on the counter on BSE and NSE so far.