HFCL Limited has filed monitoring agency reports with stock exchanges for the quarter ended March 31, 2026, providing detailed updates on the utilization of proceeds from two Qualified Institutional Placements. The telecommunications equipment manufacturer submitted comprehensive reports prepared by CARE Ratings Limited, covering fund deployment across multiple strategic initiatives.

First QIP Proceeds - Complete Utilization

The company's first QIP, conducted in August 2023, raised ₹352.00 crore through the allotment of 5,10,14,491 equity shares at ₹69 per share. The monitoring report confirms complete utilization of these proceeds by March 31, 2026.

During Q4FY26, the company utilized ₹38.95 crore for capital expenditure, specifically for purchasing equipment to manufacture intermittently bonded optical fiber ribbons and upgrading flat ribbon line equipment. The monitoring agency noted that capital expenditure completion was delayed by eight months due to adverse market conditions for optical fiber cables, but the Board approved an extension until March 31, 2026.

Second QIP Proceeds - Ongoing Deployment

The second QIP, completed in December 2025, raised ₹550.00 crore through 8,79,29,651 equity shares at ₹62.55 per share. As of March 31, 2026, ₹478.32 crore has been utilized, with ₹71.68 crore remaining for deployment.

Key Developments in Q4FY26

During the quarter ended March 31, 2026, HFCL made significant progress across multiple objectives:

Capital Expenditure: The company invested ₹4.34 crore in purchasing an Intermittent Bonded Ribbon machine for optical fiber cable expansion, contributing to the total ₹6.02 crore utilized for capital expenditure.

Research & Development: ₹6.11 crore was deployed toward manpower costs for R&D employees, bringing total R&D utilization to ₹7.36 crore.

Debt Management: The company completed ₹20.00 crore in debt repayments to Blow Packaging (India) Pvt. Ltd., fully utilizing the allocated ₹105.00 crore for borrowing repayment.

Working Capital: ₹45.42 crore was utilized for working capital requirements, completing the full ₹260.00 crore allocation.

Fund Management and Compliance

The unutilized proceeds of ₹71.68 crore from the second QIP are deployed across multiple fixed deposits with State Bank of India, earning returns between 5.00% and 6.50%. The monitoring agency noted that ₹65.42 crore held in fixed deposits has been partially marked as margin against letters of credit.

CARE Ratings Limited confirmed no major deviations from the stated objectives, though highlighted some delays in capital expenditure and R&D deployment. The original timeline projected ₹15.00 crore each for capital expenditure and R&D by FY26, but actual utilization reached ₹6.02 crore and ₹7.36 crore respectively.

Regulatory Framework

The monitoring reports comply with Regulation 32(6) of SEBI Listing Regulations and Regulation 173A(4) of SEBI ICDR Regulations. CARE Ratings Limited serves as the appointed monitoring agency to oversee fund utilization and ensure compliance with stated objectives. The company maintains transparency through quarterly reporting and has obtained all necessary government and statutory approvals for its stated objectives.

HFCL Limited has successfully concluded its Extra-Ordinary General Meeting (EGM) held on April 24, 2026, with shareholders demonstrating strong support for the company's strategic initiatives. The meeting, conducted through video conferencing in compliance with regulatory guidelines, saw overwhelming approval for a critical corporate resolution.

Shareholder Participation and Voting Process

The EGM witnessed significant shareholder engagement with comprehensive e-voting arrangements. As of the record date April 17, 2026, the company had 8,01,668 total shareholders. The company successfully sent meeting notices via email to 7,89,394 shareholders on April 01, 2026, ensuring wide dissemination of information.

The remote e-voting facility remained open from Tuesday, April 21, 2026 (09:00 A.M.) to Thursday, April 23, 2026 (05:00 P.M.), providing shareholders ample opportunity to participate in the decision-making process.

Resolution Results and Voting Breakdown

The special resolution regarding "Issue of Securities on a Preferential Basis" received remarkable shareholder support. A total of 565 members participated in the voting process, casting 73,01,17,456 valid votes.

The voting process included both remote e-voting (551 members casting 72,94,52,021 votes) and e-voting during the EGM (14 members casting 6,65,435 votes). No invalid votes were recorded, demonstrating the effectiveness of the electronic voting system.

Category-wise Voting Analysis

The resolution received strong support across all shareholder categories. Promoter and Promoter Group showed unanimous support with 100% votes in favor, while institutional and non-institutional public shareholders also demonstrated substantial backing.

Regulatory Compliance and Scrutinizer Report

CS Baldev Singh Kashtwal (Membership No. FCS 3616) served as the appointed scrutinizer for the voting process. The scrutinizer was appointed by the Board of Directors on March 25, 2026, and submitted the consolidated report on April 24, 2026, ensuring full compliance with Section 108 of the Companies Act, 2013 and SEBI Listing Regulations.

The company engaged National Securities Depository Limited (NSDL) as the service provider for the e-voting facility. The voting process was unblocked at approximately 02:20 PM on April 24, 2026, following the conclusion of the EGM proceedings.

Meeting Attendance and Participation

The EGM saw active participation through video conferencing, with 6 promoter and promoter group members and 58 public shareholders attending the meeting. The meeting commenced at 1:00 PM IST and concluded at 1:46 PM, efficiently addressing the single agenda item.

The company also fulfilled its regulatory obligations by publishing advertisements in multiple newspapers on April 02, 2026, including Indian Express (English), Divya Himachal (Hindi), and Jansatta (Hindi) editions, ensuring comprehensive information dissemination to all stakeholders.