HFCL Raises Rs 600 Crore Through QIP Issue

- Advertisement -

The company would be using the funds for expanding manufacturing facilities and product development

Telecom equipment maker HFCL has raised Rs 600 crore through the QIP (qualified institutional placement) issue. Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium were among the various investors in the QIP.

The company plans to use the QIP proceeds towards the funding of capital expenditure requirements for setting up new manufacturing facilities, capacity expansions, R&D and product development, HFCL Managing Director Mahendra Nahata informed.

- Advertisement -

“With the capacity expansion, the company would reap rich dividends in the form of revenue, market share and profitability gains.

HFCL has also applied for the production linked incentive scheme for telecom networking equipment, where the government is offering up to 20 times higher incentives based on investment and incremental production criteria.

“The PLI scheme announced by the Government, creation of 5G network, expansion of BharatNet Programme, rapidly growing fibre to the home segment and additional spectrum allocation to the telcos are set to amplify our opportunity spectrum,” Nahata said.

The capital expansion will also help in building a new plant for manufacturing products for supplies to the defence sector under Atmanirbhar Bharat and Make in India initiatives, and enable the company to capture opportunities in the segment, he added.

The proposal to raise funds was approved by the company’s board on September 03, 2021. The fundraising committee of the Board of Directors decided to raise funds through QIP, and the issue was opened on December 06, 2021, and closed on December 09, 2021.

The fundraising committee of directors at its meeting on December 10, 2021, approved the issue and allotment of 8,72,72,727 equity shares of Re 1 each to 21 qualified institutional buyers at the issue price of Rs 68.75 per equity share (including a premium of Rs 67.75 per Equity Share), aggregating to Rs 600 crore.

HFCL recently announced the appointment of two industry veterans in its two recently incorporated wholly-owned subsidiaries in the USA and Netherlands to bolster its international presence and unleash non-linear growth for the company in the global markets.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Saurav Kumar Singh, the Founder of Elecbits

“We Aim To Attract Companies From The US And UK To Manufacture In India...

0
In a discussion with EFY’s Nitisha, Saurav Kumar Singh, the Founder of Elecbits, elaborates on its design and manufacturing procedures. Additionally, he highlights a...

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

Global PC Market Up 3.1% YoY, AI Boom Ahead

0
Predicting an upcoming AI PC demand surge in the year's second half, the global PC market warms up with a 3.1% year-on-year increase in...

Buzz

Toshiba Increases Transformer Capacity, Invests $5 Billion

0
Toshiba increases transformer capacity by 1.5 times and invests $5 billion in India to expand its operations and meet growing demand. On Thursday, Toshiba Group...

BMW Advocates For Open-Source Software, Joins Eclipse SDV Group

0
The German car manufacturer has joined the Eclipse SDV Working Group as a strategic member, enhancing international cooperation on open-source software technologies for contemporary...

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

Important Sectors

Toshiba Increases Transformer Capacity, Invests $5 Billion

0
Toshiba increases transformer capacity by 1.5 times and invests $5 billion in India to expand its operations and meet growing demand. On Thursday, Toshiba Group...

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

BMW Advocates For Open-Source Software, Joins Eclipse SDV Group

0
The German car manufacturer has joined the Eclipse SDV Working Group as a strategic member, enhancing international cooperation on open-source software technologies for contemporary...

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

Budget Hydrogen Cell Startup Protonas Secures Funding From Transition VC

0
The company intends to implement its solutions to provide affordable backup power options in North American markets. It also plans to supply fuel cell...

Manufacturing

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

HPL Electric Teams with G Ramway To Make Relay Switches

0
Eyeing India’s self-sufficiency goals, smart meter manufacturer HPL Electric has inked a deal with China-based G-Ramway Technology to boost local manufacturing off switches. Last week,...

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Cooper Standard Launches Ecoflow For Electric Vehicles

0
This scalable fluid control technology, which can be used across various powertrains, is particularly effective for managing the intricate glycol thermal needs of fully...

Economic Ties Strengthens Between Taiwan And India

0
According to the trade body Chairman, James Huang, Taiwanese firms relocate supply chains from China to India, boosting India’s manufacturing and bilateral trade. As global...