Domestic telecom gear maker HFCL raises Rs 600 crore through QIP

HFCL said it has raised Rs 600 crore through the QIP issue, which it plans to use for expanding manufacturing facilities and product development.

The QIP (qualified institutional placement) received responses from various institutional investors like Reliance Ventures, Quant Mutual Fund, IIFL Wealth, Elara India, Discovery, Segantii, Millennium, among others, the company said in a statement.

"HFCL has successfully raised Rs 600 crores via QIP and I am thankful to all the investors for their overwhelming support and faith posed in HFCL's long term growth strategy. This capital raise will help in accelerating the company's plan for setting up of new manufacturing facilities, capacity expansions, research and development initiatives and new product development," HFCL Managing Director Mahendra Nahata said.

The company plans to use the QIP proceeds predominantly towards the funding of capital expenditure requirements for setting up new manufacturing facilities, capacity expansions, R&D and product development.

The capital expansion will also help in building a new plant for manufacturing products for supplies to the defence sector under Atmanirbhar Bharat and Make in India initiatives, and enable the company to capture opportunities in the segment, he added.