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HFCL spurts after promoters release pledged shares

Capital Market 

HFCL jumped 6.4% to Rs 74.8 after the company's promoters released all their pledged shares.

In a regulatory filing on Tuesday, HFCL announced that an aggregate of 6,03,87,187 equity shares, being 100% of the total pledged shares out of the promoters' shareholding, have been released. The shares were pledged in favour of various lenders as a collateral security for the credit facilities.

HFCL added that no equity share held by any of the promoters is pledged as on date of announcement.

Pledging of shares is done by promoters of the company to secure loans for meeting working capital, acquisition costs or other financial needs. Pledged shares are used as collateral by lenders for giving out loans.

As of 30 September 2021, promoters held 41.89% stake in the company.

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

On a consolidated basis, net profit of HFCL rose 60.02% to Rs 81.61 crore on a 6.42% rise in net sales to Rs 1122.05 crore in Q2 FY22 over Q2 FY21.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 23 2021. 14:33 IST