HFCL shares rise 5% on launching QIP at floor price of ₹65.84 per share

The stock was in demand after the company launched its qualified institutional placement (QIP) at a floor price of ₹65.84 per share

HFCL shares gained 4.9 per cent on BSE, registering an intra-day high of ₹67.13 per share. The stock was in demand after the company launched its qualified institutional placement (QIP). The company’s QIP opened on December 22, 2025, at a floor price of ₹65.84 per share. 

 

At 12:43 PM, HFCL’s share price was trading 4.4 per cent higher at ₹66.8 per share on BSE. In comparison, the BSE Sensex was down 0.06 per cent at 85,514.31. 

 

The company has a total market capitalisation of ₹9,637.05 crore. Its 52-week high was at ₹116.65, and its 52-week low was at ₹63.45. 

 

"Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and in accordance with the approval of the shareholders accorded through a special resolution passed on September 15, 2025, the Company may, at its discretion, offer a discount of not more than 5 per cent on the floor price so calculated for the Issue,” the filing read. 

 

Arihant Capital Markets expects the company to raise ₹500-600 crore through QIP. The funds will be utilised for: Expansion of OFC manufacturing facilities in Goa and Hyderabad, enhancement of telecom equipment and defence electronics manufacturing capabilities, research and development (R&D) initiatives, including new technology acquisitions and debt repayments, working capital funding, and general corporate purposes.  CATCH STOCK MARKET LIVE UPDATES TODAY

Outlook on HFCL

Arihant Capital Markets believes HFCL’s revenue will grow 20 per cent year-on-year (Y-o-Y) in FY26E, backed by a strong order book of ₹9,891 crore. The company is expanding high fiber count cables capacity to 19mn fkm/annum, and overall capacity is expected to reach 42.36mn by Jun-26. 

 

The optical fiber cables (OFC) prices witnessed an uptick to ₹950/f.km (earlier ₹850/f.km) and demand environment remains strong for the next 3-5 years. The company got a 1,000-acre land allotment for a defence facility can be a multi-fold opportunity going forward. 

 

Defence revenue is expected to be ₹200 crore in FY26E and ₹500 crore in FY27E, supported by order book, large-scale programs like BMP-2 vehicle upgrade. Exports remain promising, and ₹650 crore orders are executable by Apr-26. The high-value passive connectivity solutions for data centers and the commencement of high-margin operation and maintenance (O&M) contracts are additional growth drivers.

 

The brokerage has maintained ‘Buy’ on HFCL for a target of ₹145 per share.

 

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