HFCL Limited has secured a purchase order valued at ~INR 135.09 crore from RailTel Corporation of India Limited for the Annual Maintenance Contract (AMC) of a secure operations network. This five-year contract, ending in January 2031, covers the maintenance of critical data centre infrastructure for Indian defence forces, reinforcing the company's position in mission-critical secure communication projects.

Contract Details

The key details of the newly secured contract are outlined below:

Project Background

HFCL had previously executed the implementation of the Secure Operations (OPS) Network for Indian defence forces under a project awarded by RailTel. The company successfully completed the design, supply, installation, and commissioning of one central data centre and 120 mini data centres at defence establishments across the country. The scope included establishing a secure defence communication network comprising hardware, software, and data centre infrastructure, along with AI-enabled network security.

Scope of Work

Under the new AMC, HFCL will provide end-to-end maintenance support services aimed at ensuring high availability, reliability, and security of the network infrastructure. The scope of work encompasses preventive and corrective maintenance, network monitoring, incident management, performance optimization, and 24x7 technical support services. The order was received in the normal course of business and reflects the continued trust of government customers in the company’s capabilities.

HFCL Limited has completed the allotment of 7,50,00,000 warrants convertible into equity shares on a preferential basis to persons belonging to the Promoter and Promoter Group categories. The Allotment Committee of the Board of Directors approved the issuance at its meeting held on May 25, 2026. The company received the warrant subscription amount of ₹18.50 per warrant, representing 25% of the Warrant Exercise Price of ₹74 per warrant, aggregating to ₹138.75 crore.

The entire issue size was allotted to two specific entities. NextWave Communications Private Limited, falling under the Promoter category, received 3,75,00,000 warrants. Satellite Finance Private Limited, categorized as Promoter Group, received the remaining 3,75,00,000 warrants.

Shareholding Pattern Changes

Upon full conversion of these warrants into equity shares, the shareholding structure of the Promoter and Promoter Group category will see a significant increase. The following table details the pre and post-allotment shareholding figures:

The post-issue shareholding pattern is calculated based on the shareholding data as of May 22, 2026, assuming full conversion of warrants at ₹74 per equity share.

Regulatory Approvals

The preferential issue has secured necessary in-principle approvals from both BSE Limited and the National Stock Exchange of India Limited, which were granted on May 12, 2026. Additionally, the members of the company had approved the issuance via a special resolution passed during the Extra-Ordinary General Meeting held on April 24, 2026.