Telecom equipment and optical fiber cables (OFC) maker HFCL Limited (HFCL), on Tuesday said it has raised ₹600 crore via qualified institutional placement (QIP) issue, to be used in new manufacturing facilities and capacity expansions.
The QIP has shown response from institutional investors like Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium amongst others who participated in the fundraise programme of the company.
“The QIP proceeds shall be predominantly utilised towards the funding of capital expenditure requirements for setting up of new manufacturing facilities, capacity expansions and expenditure on R&D and product development,” the company said in a statement.
Earlier, the Board of Directors of the company on September 3, had passed an enabling resolution to raise funds by way of private placement or preferential issue or public issue or rights issue or QIP or through any other permissible mode and/or a combination thereof, which was also approved by the shareholders in their 34th annual general meeting held on September 30.
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The fundraising committee of the Board of Directors of the company decided to raise funds through QIP and the issue was opened on December 6 and was closed on December 9, the company said.
The fundraising committee of Directors at its meeting on December 10, approved the issue and allotment of 8,72,72,727 equity shares of ₹1 each to 21 qualified institutional buyers at the issue price of ₹68.75 per equity share (including a premium of ₹67.75 per equity share), aggregating to ₹600 crore.
The trading of the newly allotted equity shares will commence from Tuesday (December 14), at the National Stock Exchange of India Limited and BSE Limited.
“With the establishment of a new plant for manufacturing of telecom products and the capacity expansion of optical fibre, optical fibre cable while also augmenting our Goa and Chennai plants, the recent strengthening of the global leadership team and our new investments in product development, HFCL is geared up to capitalise on the upcoming growth opportunity in the decade of digital transformation that we are seeing across industry verticals,” Mahendra Nahata, Managing Director, HFCL said.
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With the capacity expansion, the company would reap rich dividends in form of revenue, market share and profitability gains, he said.
“The PLI scheme announced by the government, creation of 5G network, expansion of BharatNet Programme, rapidly growing fiber to the home segment and additional spectrum allocation to the telcos are set to amplify our opportunity spectrum,” Nahata added.
