HFCL QIP: HFCL raises Rs 600 crore via QIP
âHFCL has successfully raised Rs 600 crore via QIP and I am grateful to all investors for their unconditional support and confidence in HFCL’s long term growth strategy.
“This capital increase will help accelerate the company’s plan for the establishment of new manufacturing facilities, capacity expansion, research and development initiatives and new product development,” said the general manager. of HFCL, Mahendra Nahata.
The company plans to use the proceeds from the QAP primarily to fund capital expenditures required for the establishment of new manufacturing facilities, capacity expansions, R&D and product development.
âWith the expansion of capacity, the company would reap rich dividends in the form of revenue, market share and profitability gains.
“The government-announced PLI program, the creation of a 5G network, the expansion of the BharatNet program, the rapid growth of fiber optics to the home segment and the allocation of additional spectrum to telecom operators are expected to amplify our specter of opportunities, âNahata said.
The capital expansion will also contribute to the construction of a new manufacturing plant for products for supplying the defense sector under the Atmanirbhar Bharat and Make in India initiatives, and allow the company to seize opportunities. in the segment, he added.
The fundraising proposal was approved by the company’s board of directors on September 03, 2021.
Its shareholders approved the proposal at the annual general meeting held on September 30, 2021.
The finance committee of the board of directors has decided to raise funds via QIP, and the issue opened on December 06, 2021 and closed on December 09, 2021.
The Directors’ Fundraising Committee, at its meeting on December 10, 2021, approved the issue and allotment of 8 72 72 727 participation 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 share), making a total of Rs 600 crore.
Trading in the newly awarded capital shares will begin from Dec. 14, 2021 at NSE and BSE, the company said.