HFCL Limited has successfully completed the allotment of 7,50,00,000 warrants convertible into equity shares on a preferential basis. The allotment, made to entities within the Promoter and Promoter Group, was executed at an exercise price of ₹74 per warrant. The company has received 25% of the total warrant subscription amount, aggregating to ₹138.75 crore, marking a significant step in the company’s capital raising initiative.
Details of the Warrant Allotment
On May 25, 2026, the Allotment Committee of HFCL Limited finalized the issuance of 7.5 crore warrants. These warrants were issued to two key entities: NextWave Communications Private Limited and Satellite Finance Private Limited. Each entity was allotted 3,75,00,000 warrants, representing the entire issue size approved during the company’s Extra-Ordinary General Meeting held on April 24, 2026.
Financial Impact and Capital Structure
The company received a total of ₹138.75 crore as the initial 25% subscription amount, calculated at ₹18.50 per warrant. Following the full conversion of these warrants into equity shares, the shareholding of the Promoter and Promoter Group is expected to increase from approximately 12.79% to 16.87%. Specifically, the stake held by NextWave Communications is projected to rise to 14.47%, while Satellite Finance’s stake will grow to 2.40%.
Strategic Progress
This preferential allotment follows the receipt of in-principle approvals from major stock exchanges on May 12, 2026. The successful conclusion of this process ensures that the company remains well-positioned to execute its strategic objectives, supported by the confidence and capital commitment from its promoter group.
Source: BSE
