The issue got subscribed four times with Reliance Industries, through its investment arm Reliance Ventures and Quant Mutual Fund, hiking their stakes in the company.
The HFCL board approved allocation of 5.10 crore shares for ₹69 per share to the eligible, qualified institutional buyers in accordance with the SEBI ICDR Regulations, the company said in an exchange filing. Monarch Networth Capital was the sole banker to the QIP. HFCL share, which rallied nearly 20% in the last one month, gained 4.5% to close at ₹76.2.
Reliance Industries, through its two subsidiaries – Reliance Strategic Business Ventures and Reliance Ventures, holds a 5% stake in HFCL. Quant Mutual Fund held a 2.49% stake as of June 30, 2023.
HFCL, a supplier to Reliance Jio, is planning to install 5G in over 100 million households in the next five years. The company will likely be one of the biggest beneficiaries of BharatNet phase-2, which was announced by the government recently. BharatNet phase-2 could potentially lead to orders over ₹1 lakh crore for optical fibre cables. The company has an outstanding order book of ₹6,585 crore as of June 30, 2023.
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