HFCL raises Rs600 cr via QIP

Mumbai: HFCL Limited (HFCL), a leading innovation led telecom enterprise has raised Rs 600 crore via QIP (Qualified Institutional Placement) issue.

The institutional investors like Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium amongst others participated in the fund raise program of the company.

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 3, 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 thereof, which was also approved by the shareholders in their 34th annual general meeting held on September 30.

The fund-raising committee of the board of directors of the company decided to raise funds through QIP and the issue was opened on December 06 and was closed on December 09.

The fund-raising committee of directors at its meeting on December 10, approved the issue and allotment of 8,72,72,727 equity shares of Rs 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.