Telecommunications equipment maker HFCL Limited (HFCL) raised Rs 600 crore thanks to a QIP issue. QIP elicited an overwhelming response from institutional investors such as Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium, among others, who participated in the company’s fundraising program. .
The proceeds from the QAP will be used primarily to finance the capital expenditures required for the establishment of new manufacturing facilities, capacity expansions, and R&D and product development expenditures.
The company is one of the eligible players that has received authorization under the production incentive program for telecommunications products. In addition to its fiber business, the company is also developing various 5G products, including radios.
The board of directors of the company, at its meeting of September 3, 2021, adopted an enabling resolution to raise funds by way of private placement or preferential issue or public issue or issue of rights or securities. qualified institutional investment or by any other authorized mode and / or a combination thereof, which was also approved by the shareholders at their 34th annual general meeting held on September 30, 2021.
The fundraising committee of the board of directors had approved the issuance and allotment of 87,272,727 Re 1 shares each to 21 qualified institutional buyers at the issue price of Rs 68.75 per sShare share (including a premium of Rs 67.75 per share), totaling Rs 600 crore. Trading of the newly allocated Equity Shares will begin as of today, December 14, 2021, at the National Stock Exchange of India Limited and BSE Limited.
Commenting on the closing of the QIP issue, Mahendra Nahata, Managing Director of HFCL, said: “HFCL has managed to raise Rs 600 crore through QIP. This capital increase will help accelerate the company’s plan for setting up new manufacturing facilities, capacity expansions, R&D initiatives and new product development. ”