Reliance Industries: RIL raises stake in HFCL to five% through QIP

Mumbai: (RIL) has elevated its stake in , the nation’s largest built-in telecom community supplier, to five% by investing ₹138 crore within the latter’s certified institutional placement (QIP) that concluded on Thursday, individuals conscious of the event informed ET.

The Mukesh Ambani-led conglomerate, by way of its subsidiary Reliance Strategic Enterprise Ventures, held a 3.76% stake within the firm as of September 30.

In an change submitting, HFCL (previously Himachal Futuristic Communications Ltd) mentioned its board had authorized allotment of near 87.3 million fairness shares at a value of ₹68.75 every to certified institutional consumers. The corporate’s inventory gained 6.21% to shut at ₹92.35 on the BSE on Thursday. Bankers mentioned the ₹600-crore QIP was oversubscribed two instances.

E mail queries despatched to Reliance Industries and HFCL didn’t elicit any response as of press time Thursday.

The QIP proceeds, in accordance with HFCL, will probably be used for capability growth of optic fibre and optical fibre cables by way of its subsidiaries, capital expenditure necessities for defence services, compensation of debt, upgradation of R&D initiatives, and long-term working capital necessities.

Monarch Networth Capital, ICICI Securities, and JM Monetary have been the bankers for the share sale.

HFCL has the biggest market share in optic fibre cables within the nation and is likely one of the Wi-Fi and UBR (unlicensed band radio) methods producers. During the last three years, its working income have grown at a compounded annual development price of 23.9%. Shares of HFCL have rallied 88% within the final six months.

The corporate has an optical fibre cable manufacturing facility in Hyderabad, Goa, and Chennai. It additionally has an FRP (fibre-reinforced plastic) rod manufacturing facility at its subsidiary HTL in Hosur.

HFCL reported income of ₹2,329 crore for the half-year ended September.

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