HFCL Ltd. Board Approves ₹555 Crore Fund Raise Through Warrants
HFCL Limited announced that its Board of Directors approved a plan to raise funds through the issuance of up to 7,500,000 warrants, each convertible into one equity share. The warrants will be offered to Promoters/Promoter Group of the Company at an issue price of ₹74 per equity share, potentially aggregating to approximately ₹555 crore.This proposed preferential issue requires approval from shareholders at an upcoming Extra-Ordinary General Meeting (EGM) and other regulatory authorities.
The fund raise is intended to strengthen the company's balance sheet and provide financial flexibility as HFCL pursues accelerated growth and strategic investments, including backward integration into preform manufacturing, scaling up the defense business, and augmenting long-term working capital resources.
The Board has scheduled an EGM for Friday, April 24, 2026, to seek shareholder approval for the preferential issue. Mr. Baldev Singh Kashtwal has been appointed as the scrutinizer for the remote e-Voting process and e-Voting during the EGM. CARE Ratings Limited has been appointed as the monitoring agency to oversee the utilization of the funds received.
Details of Warrant Issuance
The following table summarizes key details of the proposed warrant issuance:
| Particulars | Remarks |
|---|---|
| Type of Securities proposed to be issued | Warrants convertible into Equity Shares of ₹ 1/- each i.e. 1 Equity Share per 1 Warrant. |
| Total number of securities proposed to be issued | Up to 7,50,00,000 Warrants, convertible into equivalent number of equity shares at an issue price of ₹ 74/- per Equity Share aggregating to ~ ₹ 555 crore. |
| Investors | 1.NextWave Communications Private Limited, up to 3,75,00,000 Warrants; Satellite Finance Private Limited, up to 3,84,71,801 warrants. |
| Issue Price | ₹ 74/- per Equity Share |
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