HFCL raises Rs 600 cr via QIP

The domestic telecom gear maker on Thursday announced the closure of its qualified institutional placement (QIP) that had opened on Monday, 6 December 2021.

The company closed the QIP issue on Thursday (9 December 2021) and raised about Rs 600 crore by allocating 8,72,72,727 equity shares at issue price of Rs 68.75 per equity share to qualified institutional buyers.

The QIP proceeds will be used for capacity expansion of optic fibre and optical fibre cables through its subsidiaries, capital expenditure requirements for defence facilities, repayment of debt, upgradation of R&D initiatives, and long-term working capital requirements.

The media reported that Reliance Industries (RIL) has increased its stake in HFCL to 5% by investing Rs 138 crore in the QIP. RIL, through its subsidiary Reliance Strategic Business Ventures, held a 3.76% stake in HFCL as of 30 September.

On a consolidated basis, net profit of HFCL rose 61.2% to Rs 85.94 crore on a 6.4% jump in net sales to Rs 1,122.05 crore in Q2 FY22 over Q2 FY21.

HFCL is a leading manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry. The company has state of the art modern production facilities at Solan (Himachal Pradesh), Goa, and Chennai (Tamil Nadu) and caters to both Indian and global markets.

Shares of HFCL were down 1.14% at Rs 91.30.

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