Reliance raises stake in HFCL to 5% through QIP

Mukesh Ambani-led Reliance Industries Ltd. (RIL), through its subsidiary, Reliance Ventures Ltd. has raised its stake in HFCL, India's largest integrated telecom network provider, to 5 per cent in the latter's qualified institutional placement (QIP) that ended on Thursday. 

RIL, via its subsidiary Reliance Strategic Business Ventures, held a 3.76 per cent stake in the company as of September 30. 

HFCL, previous Himachal Futuristic Communications Ltd., in an exchange filing, stated that its board had given a nod to allot around 87.3 million equity shares at a price of Rs 68.75 each to qualified institutional buyers. 

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The proceeds, as per HFCL, will be utilised for upgradation of R&D initiatives, repayment of debt, capacity expansion of optic fibre and optical fibre cables via the company's subsidiaries, long-term working capital requirements, and capital expenditure requirements for defence facilities. 

JM Financial, Monarch Networth Capital, and ICICI Securities were the bankers for the HFCL's share sale. 

The company commands the largest market share in optic fibre cables in India is one of the Wi-Fi and unlicensed bank radio (UBR) systems manufacturers. 

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HFCL has an optical fibre cable production facility in Chennai, Hyderabad and Goa. It also has a fibre-reinforced plastic (FRP) rod manufacturing unit at its subsidiary HTL in Hosur, Tamil Nadu. 

HFCL reported Rs 2,329 crore revenue for the half-year ended September (FY22).