HFCL Limited, a leading innovation led telecom enterprise, has raised Rs. 600 crores via QIP issue through Institutional investors like Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium, and others who participated in the fund raise program.
The QIP proceeds shall be predominantly utilized towards funding of capital expenditure requirements for setting up of new manufacturing facilities, capacity expansions, and expenditure on R&D and product development.
Earlier, the Board of Directors of the Company at its meeting held on September 03, 2021 had passed an enabling resolution to raise funds by way of private placement or preferential issue or public issue or rights issue or qualified institutional placement or through any other permissible mode and/or combination there of, which was also approved by the shareholders in their 34th annual general meeting held on September 30, 2021.
Commenting on closure of QIP issue, Mahendra Nahata, Managing Director, HFCL said, “HFCL has successfully raised Rs. 600 crores via QIP and I am thankful to all the investors for their overwhelming support and faith posed in HFCL’s long term growth strategy. This capital raise will help in accelerating the company’s plan for setting up of new manufacturing facilities, capacity expansions, R&D initiatives and new product development.”
“With the establishment of new plant for manufacturing of telecom products and the capacity expansion of optical fiber, optical fiber cable while also augmenting our Goa and Chennai plants, recent strengthening of the global leadership team and our new investments in product development, HFCL is geared up to capitalize on the upcoming growth opportunity in the decade of digital transformation that we are seeing across industry verticals,” commented Nahata.
“With the capacity expansion, the company would reap rich dividends in the form of revenue, market share, and profitability gains. 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,” added Nahata.
He also added that the capital expansion will also help in building up of a new plant for the manufacture of products for supplies to the Defence sector under AtmaNirbhar Bharat/ Make in India initiatives and will enable the company to capture opportunities in the defense segment as well”.