HFCL Limited has successfully raised approximately ₹550 crore through a Qualified Institutions Placement (QIP) and an additional ₹555 crore via a preferential issue of warrants. The QIP involved the allotment of 8,79,29,651 equity shares at ₹62.55 per share. The preferential issue consisted of 7,50,00,000 warrants at ₹74 per warrant, with 25% of the issue price paid upfront. CARE Ratings Limited has provided monitoring reports for both issuances.
HFCL Secures Significant Funding Through Two Major Issuances
HFCL Limited announced the successful completion of two substantial capital-raising initiatives, bolstering its financial resources. The company has raised approximately ₹550 crore through a Qualified Institutions Placement (QIP) and an additional ₹555 crore via a preferential issue of warrants. These issuances, reported on October 19, 2026, reflect the company’s active engagement in capital markets to fund its strategic objectives.
Qualified Institutions Placement (QIP) Details
In its Qualified Institutions Placement, HFCL allotted 8,79,29,651 equity shares. These shares were issued at a price of ₹62.55 per share, which included a discount of 5% on the floor price. The resolution for this placement was passed by the Board of Directors on July 25, 2025, with subsequent shareholder and committee approvals. The total funds raised through this QIP amounted to approximately ₹550 crore.
Preferential Issue of Warrants
Furthermore, HFCL conducted a preferential issue of 7,50,00,000 warrants to persons belonging to the Promoter/Promoter Group category. The issue price for these warrants was set at ₹74 per warrant, with each warrant convertible into one equity share of the company. As per the terms, 25% of the issue price, amounting to ₹18.50 per warrant, was received upfront by the company, aggregating to approximately ₹138.75 crore from the allottees. This preferential issue is governed by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Monitoring Agency Reports
CARE Ratings Limited has been appointed as the Monitoring Agency for both the QIP and the preferential issue. The company has submitted Monitoring Agency Reports for the quarter ended September 30, 2026, detailing the utilization of the proceeds raised. These reports confirm that the utilization of funds is being monitored in accordance with the applicable SEBI regulations and the respective placement documents.
Utilization and Progress
The monitoring reports indicate progress in the utilization of funds for various objects, including capital expenditure for plant and machinery, research and development initiatives, and working capital requirements. For the QIP proceeds, the capital expenditure towards the expansion of Optical Fibre Cable amounted to ₹35 crores, with significant utilization reported. Similarly, for the preferential issue, the utilization of funds for R&D initiatives and other corporate purposes is being tracked, with a noted delay in the investment into HFCL Advance Systems Private Limited, which has been extended to December 31, 2026.
Source: BSE
