HFCL Limited received monitoring agency reports for the quarter ended December 31, 2025, regarding the utilization of proceeds from Qualified Institutions Placements (QIP). The reports, issued by CARE Ratings Limited, indicate that the proceeds are being utilized as disclosed in the offer documents. These reports monitor capital expenditures, R&D, and other corporate purposes.
Qualified Institutions Placement Monitoring
HFCL Limited announced that monitoring agency reports concerning the utilization of funds raised through Qualified Institutions Placements (QIP) have been received for the quarter ending December 31, 2025. The reports were provided by CARE Ratings Limited, the monitoring agency appointed for this purpose.
Details from the Monitoring Agency Reports
The monitoring agency reports confirm that the utilization of the issue proceeds is in accordance with the disclosures made in the offer documents. Key aspects of the fund utilization are:
- Capital Expenditure: Funds are allocated for expanding optical fiber cable production.
- Research and Development: Investments are being made in R&D initiatives and technology acquisitions.
- General Corporate Purposes: Funds are also allocated for general business needs.
Capex and Project Timelines
Capital expenditures incurred until Q2FY26 were lower than initially projected due to changing economic and geopolitical conditions affecting the optical fiber cable market. A revised timeline for utilizing the unspent amount, extending to March 31, 2026, was approved in a board meeting held on July 25, 2025.
Financial Performance Context
During H1FY26, HFCL reported a decrease in Total Operating Income (TOI) to Rs. 1914.36 crores, compared to Rs. 2251.85 crores in H1FY25. However, in Q2FY26, there was improvement, with a TOI of Rs. 1043.34 crores.
Specific Fund Utilization Details (New QIP)
A new QIP has also been assessed in a separate report, of which fund utilisation is as follows:
- During Q3FY26 the company has expensed Rs. 1.68 crore toward payment for purchase of ribbon bundling line
- The company has expensed Rs. 1.25 crore toward payment of design and service cost for RF testing.
- Company has repaid Rs. 85 crore of borrowings.
- Company has utilised Rs. 214.58 crore to fund its working capital requirement.
- Company has utilised Rs. 90.25 crore towards general corporate purposes.
Source: BSE
