HFCL Ltd

HFCL Ltd has been awarded a contract worth approximately ₹2,666.09 Crores by Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle. The comprehensive scope of the contract includes the supply, installation, and commissioning of telecom equipment and related accessories, creation of an Optical Fiber Cable Telecom Network, and maintenance of the project for a period of 10 years, which includes a 1-year warranty. The implementation period for the project is two years. This new contract complements an earlier ₹2,167.65 Crores contract awarded by RVNL for BharatNet Phase-III projects. The company emphasizes its commitment to strengthening its position in the telecom network domain and delivering large-scale digital connectivity projects. The contract value is split into Capex of ~₹1192.82 Crores and Opex of ~₹1473.27 Crores.

HFCL Limited's board approved a significant restructuring of its defence business. The company will invest ₹89.25 Crore in its subsidiary, HFCL Advance Systems Private Limited (HASPL), to create a focused defence platform. This includes the transfer of HFCL's thermal weapon sight (TWS) business to HASPL for ₹50 Crore and the disinvestment of up to 80% in Raddef Private Limited to HASPL for ₹75 Crore. Additionally, HASPL will acquire HFCL Defence Systems Private Limited for ₹25 Crore and invest ₹25 Crore in its aerostructure business. These moves aim to strengthen HFCL's defence capabilities, expand into aerostructures, and leverage an export order book of approximately ₹1,890 Crore.

HFCL Ltd's board approved several strategic transactions aimed at strengthening its defence business. The company will invest ₹89.25 Crore in its subsidiary HFCL Advance Systems Private Limited (HASPL) and divest up to 80% of Raddef Private Limited for ₹75 Crore. Additionally, HFCL will transfer its thermal weapon sight business to HASPL for ₹50 Crore. HASPL will also acquire HFCL Defence Systems Private Limited for ₹25 Crore and acquire the aerostructure business of Defsys. These moves aim to create a focused defence platform with an export order book of approximately ₹1,890 Crore.

HFCL Limited's board approved the disinvestment of up to 80% of its subsidiary Raddef Private Limited to HASPL for ₹375 Crore. Additionally, HFCL will invest ₹89.25 Crore in HASPL, increasing its stake to 51.02%. The company is also transferring its thermal weapon sight business to HASPL for ₹50 Crore. HASPL will further acquire HFCL Defence Systems Private Limited for ₹25 Crore and invest ₹25 Crore in its aerostructure business. These moves aim to consolidate HFCL's defence sector presence and expand into aerostructures, leveraging an export order book of ~₹1,890 Crore.

HFCL Ltd's Board of Directors approved significant strategic moves in its defence business. The company will invest ₹89.25 Crore in its subsidiary, HFCL Advance Systems Private Limited (HASPL), and HASPL will acquire up to 80% of Raddef Private Limited for ₹75 Crore. Additionally, HFCL will transfer its thermal weapon sight business to HASPL for ₹50 Crore. HASPL will also acquire HFCL Defence Systems Private Limited for ₹25 Crore and subsequently invest ₹25 Crore in it to acquire Defsys's aerostructure business. These transactions aim to create a focused defence platform with an export order book of approximately ₹1,890 Crore, enhancing HFCL's capabilities in aerostructures, radar systems, and thermal weapon sights, aligning with the 'Make in India' initiative.

HFCL Ltd. has secured a purchase order worth approximately ₹135.09 Crore from RailTel Corporation of India Limited for the Annual Maintenance Contract (AMC) of the "Implementation of Secure Operations (OPS) Network" project, catering to data centers of Indian defence forces. This follows HFCL's prior successful implementation of the Secure OPS Network. The AMC contract spans five years and includes comprehensive maintenance support services to ensure high availability, reliability, and security of the network infrastructure.

HFCL Ltd has allotted 7,50,00,000 warrants convertible into equity shares on a preferential basis to promoters and promoter group entities, NextWave Communications Private Limited and Satellite Finance Private Limited. The company received ₹138.75 crore, representing 25% of the warrant exercise price. Post allotment, NextWave's shareholding will increase to 14.47% and Satellite Finance's to 2.40%.

HFCL Ltd. has extended a Corporate Guarantee of ₹265 Crores in favor of SBICAP Trustee Company Limited for the benefit of the Working Capital Lenders of HTL Limited, a subsidiary of HFCL. This replaces an earlier guarantee of ₹295 Crores. The guarantee secures fund-based and non-fund-based facilities availed by HTL. HFCL holds 74% of HTL's paid-up share capital, with the remaining 26% held by the Government of India. The corporate guarantee is provided on an arm's length basis and will be disclosed as contingent liabilities in HFCL's financial statements.

HFCL Ltd's Board approved establishing a Defence Manufacturing Facility in Andhra Pradesh for Multi-Mode Hand Grenades (MMHG) and similar products, with an initial capital outlay of approximately ₹230 crore. This move aligns with India's 'Aatmanirbharta' initiative and HFCL's strategic expansion into the high-value defence sector, capitalizing on growth in domestic and global defence markets. The facility is expected to be completed by December 2027, financed through internal accruals, debt, or preferential issue of convertible warrants.

HFCL Ltd's Board approved establishing a Defence Manufacturing Facility in Andhra Pradesh for Multi-Mode Hand Grenades (MMHG) and similar products, with an initial capital outlay of approximately ₹230 crore. This move aligns with India's 'Aatmanirbharta' initiative, targeting the growing domestic and global defence sectors. The facility aims to manufacture ~40 lakh units annually, with completion expected by December 2027, financed through internal accruals, debt, or preferential issue of convertible warrants. This investment is expected to significantly enhance HFCL’s capabilities in defence manufacturing.