In terms of Regulations 32(6) of the SEBI Listing Regulations read with Regulation 173A(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), please find enclosed the Monitoring Agency Report for the quarter ended March 31, 2025, issued by CARE Ratings Limited, Monitoring Agency, appointed to monitor the utilisation of proceeds raised through issuance of equity shares by way of Qualified Institutions Placement.
HFCL · price
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HFCL has filed the quarterly Monitoring Agency Report from CARE Ratings for its 2023 Qualified Institutions Placement (QIP), which raised Rs. 352 crore gross (Rs. 342.50 crore net) through the issue of about 5.10 crore equity shares at Rs. 69 each. As of March 31, 2025, the company has utilized Rs. 280.81 crore (~82%) of the net proceeds, with R&D (Rs. 85 crore), short-term borrowing repayment (Rs. 74.04 crore), working capital funding (Rs. 75 crore), and general corporate purposes (Rs. 33.46 crore) fully deployed. Only Rs. 13.12 crore of the Rs. 75 crore earmarked for capital expenditure has been used so far, leaving Rs. 61.88 crore unutilized, which is parked in SBI fixed deposits earning 6.25–7% interest plus Rs. 3.95 crore in the monitoring account. The Monitoring Agency reported no deviation from stated objects, and capital expenditure is expected to be completed by July 2025.
This is a routine compliance disclosure and largely neutral for shareholders. The clean report with no deviations and orderly deployment of funds signals good governance, while the unutilized Rs. 61.88 crore earning interest provides a small buffer. Investors should watch for the timely completion of the capital expenditure plan by July 2025, as further delays could raise questions on execution.