The board of Himachal Futuristic Communications Limited (HFCL) has approved raising up to Rs 6.5 billion to be invested in enhancing research and development facilities and setting up new production facilities to enhance capacity under the production-linked incentive (PLI) scheme and design-linked incentive scheme.
As per a regulatory filing, the board of directors has approved raising funds up to Rs 6.5 billion by way of private placement, preferential issue, public issue, rights issue, qualified institutions placement or through any other permissible mode and/or a combination thereof, including by way of issue of equity share, preference shares, bonds, debentures, non-convertible debt instruments or any other securities.
Further, the company’s board of directors has approved the issuance of up to 10,000,000 warrants convertible into 10,000,000 equity shares at a price of Rs 80 per share, aggregating to Rs 800 million to one of the promoters, subject to all necessary approvals. The board also approved the issuance of up to 4,100,000 warrants convertible into 4,100,000 equity shares at a price of Rs 80 per share, aggregating to Rs 328 million to the persons belonging to the non-promoter category.
According to HFCL, 5G network rollouts, increasing adoption of fibre-to-the-home (FTTH) and emphasis on rural broadband penetration will lead to huge capex by telecom operators, in turn creating massive opportunities for telecom equipment vendors. The company says that it is fully geared up to capitalise on these opportunities in India and abroad with its successful foray into the export market.
