HFCL Limited reports on the utilization of proceeds from its Qualified Institutions Placement (QIP) for the quarter ending September 30, 2025. As per the monitoring agency’s report, the funds have been allocated towards capital expenditure, research & development, and repayment of short-term borrowings. A timeline extension until March 31, 2026, has been granted for unutilized amounts due to changing market conditions. The company anticipates no impact on project costs or viability.
QIP Funds Allocation for Q2 FY26
HFCL Limited completed a Qualified Institutions Placement (QIP), allotting 51,014,491 equity shares at a price of ₹69 per share. A monitoring report from CARE Ratings Limited provides details on the use of these funds as of September 30, 2025.
Utilization Details and Deviations
While funds were allocated towards capital expenditure, research & development, and repayment of short-term borrowings, there were some deviations from the initially planned amounts. Specifically, capital expenditure was lower than projected due to changing economic and geo-political conditions impacting the optical fiber cable market. The company’s board approved an extension for utilizing the remaining funds until March 31, 2026.
Specific Expenditures and Unutilized Amounts
As of the end of the quarter:
- Capital Expenditure: ₹32.31 crore utilized, with a remaining ₹42.69 crore unutilized.
- Research and Development: ₹85.00 crore fully utilized.
- Repayment of Short-term Borrowings: ₹74.04 crore fully utilized.
The unutilized funds are primarily held in fixed deposits and assigned as margin against Capex Letters of Credit. The company states that no government or statutory approvals are pending, and technical assistance/collaboration arrangements are in operation.
Working Capital and General Corporate Purposes
Funds allocated towards working capital requirements and general corporate purposes have been substantially utilized. Any remaining amounts are consistent with the company’s overall strategic objectives. There are no significant favorable or unfavorable events affecting the viability of these objectives.
Timeline Extension
The board approved an extension of the timeline for utilization of the unutilized amount up to March 31, 2026. This decision was made in response to the changing economic landscape and its impact on market conditions for optical fiber cables. HFCL anticipates that this extension will not affect the cost or viability of its projects.
Source: BSE
