HCL Infosystems has announced the completion of its acquisition of the remaining 15% stake in its subsidiary, Pimpri Chinchwad e-services Limited. The transaction, which took place on September 4, 2025, marks a significant milestone as Pimpri Chinchwad e-services becomes a wholly-owned subsidiary of HCL Infosystems.

Transaction Details

The acquisition involved the purchase of 7,500 shares at Rs. 1.00 per share, totaling Rs. 7,500.00. This move follows the company's previous holding of an 85% stake in the subsidiary. The transaction received shareholder approval on September 18, 2024, paving the way for its completion.

About Pimpri Chinchwad e-services

Pimpri Chinchwad e-services Limited was incorporated on September 21, 2010, as a special purpose vehicle (SPV). The company was initially formed as a joint venture between IL&FS, Software Technology Parks of India, and HCL Infosystems. Its primary objective was to provide WiFi connectivity services to Pimpri Chinchwad Municipal Corporation.

Financial Status and Operations

Despite its initial purpose, Pimpri Chinchwad e-services has faced challenges since its inception. The company reports:

• Negative net worth
• Nil turnover
• No business operations since incorporation

Regulatory Compliance

HCL Infosystems has duly informed the BSE Limited and the National Stock Exchange of India Limited about this acquisition, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's disclosure, filed on September 4, 2025, provides detailed information about the transaction and its implications.

Strategic Implications

While the acquisition solidifies HCL Infosystems' complete ownership of Pimpri Chinchwad e-services, the subsidiary's lack of business operations and negative financial status raise questions about its future role within the HCL Infosystems portfolio. The company has not disclosed any immediate plans for revitalizing or repurposing the subsidiary.

This move by HCL Infosystems demonstrates the company's commitment to streamlining its corporate structure, potentially setting the stage for future strategic decisions regarding its non-performing assets.

HCL Infosystems Limited , a prominent IT system integration and solutions company, has released its financial results for the first quarter, reporting a consolidated net loss and declining revenues.

Financial Performance

HCL Infosystems reported a consolidated net loss of Rs 450.00 lakhs for Q1, compared to a loss of Rs 413.00 lakhs in the same quarter of the previous year. The company's revenue from operations declined to Rs 703.00 lakhs from Rs 747.00 lakhs year-over-year, reflecting a decrease of about 5.89%.

Operational Highlights

The company's performance was impacted by several factors:

1. Delayed Receipts: HCL Infosystems continues to face challenges in securing timely customer approvals and sign-offs for completed projects, leading to delays in payment collection.

2. Legal Proceedings: The company has initiated arbitration proceedings against several customers to recover overdue receivables from system integration contracts.

3. Legacy Issues: Significant costs and efforts are being expended on legal and legacy matters, impacting the company's financial health.

4. Operating Expenses: During the quarter, the company incurred legal expenses of Rs 270.01 lakhs towards ongoing litigations and legacy issues.

5. GST Provision: A provision of Rs 187.74 lakhs was made for unutilized GST input tax credit.

Financial Position

The company's financial position remains precarious:

• Current liabilities exceeded current assets by Rs 48,081.00 lakhs.
• The company's net worth has been fully eroded due to continuous losses over the past years.

Management Commentary

Mr. Raj Sachdeva, Manager of HCL Infosystems Ltd, stated, "During this quarter, the Company remained focused on actively pursuing arbitration proceedings to recover overdue receivables from system integration customers."

Future Outlook

Despite attempts to reduce debt and losses, and financial support provided by the promoters, HCL Infosystems continues to face severe challenges. The company lacks adequate surplus funds and other resources to invest in new ventures or expand existing operations.

Corporate Actions

1. The company has scheduled its 39th Annual General Meeting to be held through video conferencing.

2. HCL Corporation Private Limited, a significant promoter shareholder, has provided financial support through corporate guarantees of Rs 39,600.00 lakhs and interest-free unsecured loans of Rs 35,500.00 lakhs.

3. The company received tax refunds amounting to Rs 456.73 lakhs during the quarter, including Rs 380.81 lakhs in income tax refunds and Rs 75.92 lakhs in indirect tax refunds.

HCL Infosystems' ability to continue as a going concern remains uncertain, given its continuous losses and fully eroded net worth. The company's management and board are working on strategies to address these challenges and improve its financial position.