The telecom company is planning to use the QIP proceeds for setting up new manufacturing facilities, capacity expansions, R&D, and product development.
December 15, 2021
Indian telecom gear and equipment manufacturer HFCL Limited (HFCL) has raised INR 600 crore through a QIP (qualified institutional placement) issue. The QIP received responses from institutional investors including – Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium, as shared by the company in a statement.
Speaking about the QIP issue, Mr. Mahendra Nahata, Managing Director, HFCL, said, “HFCL has successfully raised INR 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, research and development initiatives, and new product development.”
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The company is intending to utilise the QIP proceeds majorly towards the funding of capital expenditure requirements for setting up new manufacturing facilities, capacity expansions, R&D, and product development.
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Furthermore, the telecom company is one of the eligible players which have received permission under the production linked incentive scheme for telecom products. Apart from its optical fibre business, the company is also developing various 5G products which include radios amongst others.
