HFCL Limited , a prominent player in the telecommunications and defense sectors, has officially opened its ₹700 crore fundraising initiative through a Qualified Institutional Placement (QIP) with detailed pricing and documentation now in place.

QIP Officially Launched with Floor Price

The Fund Raising Committee of Directors has taken decisive action on December 22, 2025, officially opening the proposed QIP and establishing key parameters for the fundraising initiative. The committee meeting, held from 8:10 PM to 8:30 PM, approved critical aspects of the offering.

The floor price of ₹65.84 per equity share has been determined based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations. The company retains the discretion to offer a discount of up to 5% on this floor price, as approved by shareholders.

Regulatory Compliance and Documentation

The QIP is being conducted in full compliance with regulatory requirements, including Chapter VI of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and Sections 42 and 62 of the Companies Act, 2013. The committee has approved and adopted the preliminary placement document dated December 22, 2025, which has been filed with stock exchanges and made available on the company's website at https://www.hfcl.com/qip-2025 .

The company has formally notified BSE Limited and National Stock Exchange of India Limited about the QIP launch, with the preliminary placement document filed as compliance under Regulation 30 and other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Fundraising Objectives

The ₹700 crore fundraising initiative is designed to support multiple strategic objectives across HFCL's business operations. The company plans to utilize the funds for leveraging growth opportunities in defense and telecommunications sectors, supporting strategic investments, and strengthening its capital base.

Market Context and Financial Performance

The QIP launch comes amid challenging first quarter results, with the company reporting a consolidated net loss of ₹322.00 million compared to a profit of ₹1.10 billion in the previous year. Revenue declined by 25.00% year-over-year to ₹8.70 billion, while EBITDA margin contracted significantly to 3.26% from 15.03%.

The trading window for designated persons and their immediate relatives remains closed from November 18, 2025, until December 28, 2025, for the purpose of the QIP. The issue price will be determined by the company in consultation with the appointed Book Running Lead Manager, providing flexibility in final pricing based on market conditions and investor demand.

HFCL Limited (formerly Himachal Futuristic Communications Ltd), a prominent player in the telecommunications equipment manufacturing sector, has announced a crucial board meeting scheduled for July 25. The primary focus of this meeting will be to deliberate on the company's fundraising plans, potentially marking a significant step in HFCL's financial strategy.

Key Points of the Upcoming Board Meeting

• Date: July 25
• Main Agenda: Discussion and evaluation of fundraising proposals

Potential Fundraising Options

According to the company's announcement, the board will consider various fundraising methods, which may include:

• Issue of equity shares
• Preference shares
• Bonds
• Debentures
• Non-convertible debt instruments
• Warrants
• Other securities

The company is likely to explore multiple avenues for raising funds, such as:

• Preferential issue on a private placement basis
• Qualified institutional placement
• Rights issue
• Other methods or a combination thereof

It's important to note that any decisions made during this meeting will be subject to necessary approvals and regulations.

Implications for Investors

While the specific details of the fundraising plans are yet to be disclosed, this meeting signals HFCL's proactive approach to strengthening its financial position. Investors and market watchers will be keenly awaiting the outcome of this board meeting, as it could potentially impact the company's future growth strategies and financial structure.

As HFCL continues to navigate the dynamic telecommunications equipment market, the results of this upcoming board meeting may provide valuable insights into the company's financial outlook and strategic direction.