HFCL Limited , a prominent player in the telecommunications equipment industry, has announced a strategic move to divest its entire stake in Nivetti Systems Private Limited. The company has executed a Share Purchase Agreement (SPA) to sell its 15.19% shareholding in Nivetti for a total consideration of ₹525.10 million (₹52.51 crore).

Transaction Details

The divestment involves the sale of 2,17,594 equity shares, representing HFCL's entire stake in Nivetti Systems. The transaction is structured to be completed in one or more tranches, with a portion of the payment already received and the remainder expected to be settled by mid-October.

Key Points of the Agreement

• Buyer: Trinity Tech Solutions, based in Bangalore
• Initial Payment: Approximately ₹120.00 million (₹12.00 crore) received on September 1
• Completion Date: The remaining amount is expected to be received on or before October 15
• Regulatory Compliance: The transaction has been disclosed in accordance with SEBI Listing Regulations

Strategic Implications

This divestment represents a calculated move by HFCL to monetize its investment in Nivetti Systems. While Nivetti was neither a subsidiary nor an associate of HFCL, this transaction allows HFCL to reallocate its resources and potentially focus on its core business operations.

Market Response

Coinciding with this announcement, HFCL has also addressed a query from the BSE regarding a significant increase in the trading volume of the company's shares. HFCL has clarified that there is no pending information or event that could have influenced the recent volume movement, attributing it to market dynamics.

Conclusion

The sale of HFCL's stake in Nivetti Systems marks a significant corporate action for the company. As the transaction progresses towards its expected completion in October, market observers will be keen to see how HFCL utilizes the proceeds from this divestment and its impact on the company's future strategic direction.

HFCL continues to affirm its commitment to transparency and compliance with regulatory requirements, ensuring timely disclosure of all material information to its stakeholders.

HTL Limited, a material subsidiary of HFCL (Himachal Futuristic Communications Limited), has clinched a significant contract worth approximately INR 101.82 crore from the Indian Army. The contract involves the supply of Tactical Optical Fiber Cable and related accessories, showcasing the company's prowess in manufacturing cutting-edge communication solutions for defense applications.

Contract Details

The contract, awarded in the normal course of business, encompasses the following key aspects:

Advanced Technology for Battlefield Communications

HTL Limited's indigenously manufactured solution features several advanced characteristics designed for extreme battlefield conditions:

• Durability: Optical Fiber Cables capable of withstanding the weight of heavy armored vehicles
• Specialized Connectors: Equipped with military-grade connectors for demanding environments
• Rapid Deployment: Enables quick setup of optical fiber communication links in challenging battlefield conditions
• Portability: Lightweight design allows infantry personnel to carry the equipment in backpacks, ensuring mobility and operational readiness

Strategic Importance

This contract underscores the Indian Army's focus on enhancing its communication infrastructure with state-of-the-art technology. The tactical optical fiber cables will play a crucial role in ensuring robust and secure communication channels during mission-critical operations.

Company Outlook

The securing of this contract by HTL Limited, a material subsidiary of HFCL, demonstrates the company's strong position in the defense communications sector. It also highlights the government's push for indigenous manufacturing in line with the 'Make in India' initiative.

HFCL Limited continues to strengthen its portfolio in the telecommunications and defense sectors, with this latest contract adding to its order book and potentially boosting investor confidence in the company's growth trajectory.

As the project execution begins, stakeholders will be keenly watching HTL Limited's performance in delivering this critical communication infrastructure to the Indian Army within the stipulated timeframe.